As you begin to count down the years until retirement, you might also be thinking about downsizing your home. While not everyone changes homes soon after retirement, many people opt to sell their home and move into a condo, as it may be more conducive to their new lifestyle. If this is the plan you have in mind, there's no point in waiting to make this purchase. Buying your condo in advance and renting it out until you're ready to move in can make a lot of sense. Here are some things to think about concerning this real estate purchase.
Work With An Agent
Real estate agents are ideal to turn to when you want to buy an investment property. You can tell your agent exactly what you're looking for in a condo, and have him or her find the right one for you. As your agent will understand that you'll be renting the condo out and then eventually moving into it, he or she will work hard to find a property that is competitively priced. You may wish to hire an agent who specializes in condo purchases and sales, as this person will often be more knowledgeable about the local condo scene than the average residential agent.
Earn Some Extra Money
Regardless of your current financial situation, buying a condo now and renting it until you need it is a smart financial move. If you have the means to buy the condo outright, the rent that you collect from your tenant will just be money in your pocket. If you need to make mortgage payments on the condo, the tenant's rent check can cover most or all of the mortgage amount each month. In some cases, you might even be able to charge more in rent than you're paying for the mortgage on the condo.
Communicate With Your Tenant
It's only fair to let prospective tenants know about your plan for eventually moving into the condo when you retire. You don't want someone thinking about living in the unit for the long term, only to be evicted in a couple years so that you can move in. It's polite to explain your plans with the tenant. You'll often find people who are interested in short-term rentals, so you may be able to find the perfect tenant quickly. In many cases, your real estate agent may represent people who wish to rent instead of buy, so you may have a tenant lined up before you know it.