If retirement living is getting closer on the horizon, instead of putting extra savings into the stock market, some experts recommend buying a second house.
According to a recent article on FoxBusiness.com, some financial planners say now is the time to buy a house, given low interest rates and affordable housing prices. But, they warn, potential purchasers still need to put a lot of research into the decision before they make the plunge, and that it’s not for everybody.
“People get stars in their eyes sometimes at the prospect of retirement, but the reality is that they may not be able to afford to buy another home right now,” Kimberly Foss, president of Empyrion Wealth Management in Roseville, California, told the news source.
Foss told the media outlet that she suggests Baby Boomers save at least one year’s worth of living expenses in the event of any emergencies, and she also said people need to consider the costs associated with owning an additional property, including taxes, maintenance, and utilities.
According to Foss, many Baby Boomers and soon-to-be retirees look at second homes because they like the idea of rental income during their retirement years. But like any investment, prospective buyers need to do their research before making any big decision.