How to Find and Purchase a Homesteading Property Post-Retirement
As a retiree, you finally have the opportunity to pursue dreams you’ve put on hold over the years. This is your chance to try new things and learn new skills. But what if you’ve been dreaming of a homesteading hobby? Is it realistic to buy a larger property after retirement and start a small farm or artisan business? As a matter of fact, upsizing post-retirement might be a great idea. Having new interests and abundant activities can help keep you healthy and thriving. Plus, a larger home might mean more and longer visits from loved ones. If this sounds good to you, here are some tips for making it possible to upsize your home for your retirement years.
Start with a budget.
Don’t get carried away window-shopping for dream properties until you have a clear idea of what you can afford. To assess this, you will need to take into account your existing capital, your prospective income, what you are likely to get for the sale of your present home, and what kind of home loan you can get. Talk to an accountant about how much you can reasonably set aside as a down payment. Be sure you have factored future property taxes into your planning.
Apply for a loan.
There are several different kinds of loans available for home buyers. When assessing different loans, consider the length, the interest rates, and what type of loan it is. A conventional mortgage is the most common type of home loan. It is lower in cost than FHA loans and easier to get than special program loans. Evaluate the different rates that are available when applying for a home mortgage, and keep in mind you can choose either a fixed-rate or adjustable-rate loan. With a conventional mortgage, you can avoid having to take out mortgage insurance if you are able to put 20% or more into your down payment.
Make a list of specifications for your new property.
If you’re planning to start a hobby farm or homesteading project, your requirements for your new property might be a little different. Are you aiming for self-sufficiency or pursuing alternative energy sources? If your goal is to be somewhat off-grid, a home with fewer amenities might suit you. Decide how much square footage you need, taking into consideration possible guest rooms and any workshop area. Figure out whether you can afford to build additions if you find a home you like that isn’t large enough and whether or not you plan to upgrade your new house. Also, what kind of location would you prefer? Do you want to be close to stores and other residences, or would you enjoy a more remote rural location?
Figure out your land needs.
Considerations to look at when you look at land depend on what uses you intend to make of it. If you hope to plant gardens or grow crops, you will need a reliable water source and decent soil quality. Look at the percentage of cleared to forested land. For homesteaders who intend to graze animals, you will want adequate pasture with access to water. Find out if there are any zoning regulations that would limit uses made of the land.
Know how to shop for affordable property.
Property prices may be high, but that doesn’t mean you can’t find a good deal. Some tips when looking at real estate pages include sorting by price and setting up notifications for when a new property comes up or a price comes down. Don’t be afraid to make a lot of offers since, unfortunately, many are likely to fall through. If you’re willing to do some repairs, a foreclosed home could be a good and low-cost option. Buying directly from the seller instead of through an agent can also help you save, especially if they are trying to make a quick sale.
Retirement can be an exciting time to embark on a new stage in your life. Though it might take a little careful planning, you may indeed be able to retire to a larger home with land attached and live out your homesteading dream. Contact Homesfield if you are considering purchasing property in Arizona. (602) 290-6217