by Bob Shannon
Are you sick of the city and dreaming of a slower pace of life in retirement? The countryside promises a simpler lifestyle where retirees can grow a garden, raise backyard chickens, and spend time with family and friends rather than getting caught up in the rat race of city living. However, there’s a lot to think about before trading your downtown rowhome for a rural farmhouse.
Is homesteading right for you?
Homesteaders are all about self-sufficiency. They grow food, raise animals, and even generate their own electricity. It’s a more physical way of life than urban living, to be sure. However, because homesteaders aren’t running working farms, it’s still practical for older adults.
In fact, homesteading has a number of benefits for seniors. Not only does a self-sufficient lifestyle keep you active, but homesteading also lowers your cost of living and even provides income opportunities.
Can you afford it?
Retirees may be up to the challenge of homesteading, but are their wallets up to the task? As home prices rise and mortgage lending grows stricter, older adults’ homesteading dreams seem further and further out of reach.
Be realistic.
The biggest challenge is finding affordable property that’s close enough to hospitals, doctors’ offices, shopping, public transportation, and other everyday needs. You don’t want to contend with long, unmaintained country roads, harsh winter weather, or a lack of quality healthcare when you’re older. Plus, rural living can be isolating for seniors. Look for affordable places to retire and shop for real estate in nearby suburbs rather than venturing deep into the countryside.
Understand needs vs. wants.
You’ll also save money by keeping your needs modest. Sprawling acreage may excite your imagination, but expansive properties have equally large needs. Set your sights on smaller properties with a house, a garage or workshop, and a well and septic system. Additionally, look for houses with guest rooms for visitors and layouts conducive to hosting — it may be a long drive to the nearest hotel!
Get mortgage-ready.
Financing is the final question for retirees. 60% of senior households are in debt — many with debt over $30,000. Before qualifying for a mortgage, these older adults will need to aggressively pay down debt and rebuild their credit score. This isn’t easy to do if you’re already retired. If tightening the purse strings isn’t enough to get ahead of debt, you may need to talk to a debt relief specialist in your state. Debt counseling can help you devise a debt payoff strategy that makes sense for your circumstances.
Retirees with less-than-stellar finances will also need to sell their present home before purchasing a new one. Otherwise, you’ll be faced with paying two mortgages at once and scrambling for a down payment. Waiting until your house is under contract to shop for a homestead may allow for a seamless transition from one house to the next if you’re lucky. If not, you may have to find interim housing or request an extended closing from the seller.
What about multigenerational homesteading?
There’s another way retirees can keep their homesteading dreams within reach: by partnering with family. While co-owning property comes with risks, it also makes loan qualification easier and means more helping hands on the homestead. However, sharing close quarters with kids and grandkids does come with certain sacrifices. Communication is key to living harmoniously in a multigenerational household. It’s also a good idea to look for a property that offers privacy, whether that’s a split-level layout, an accessory dwelling unit, or space to build a second home.
It’s easy to get caught up in the hype of the homesteading lifestyle. However, before you make the leap into a homesteading retirement, make sure you know exactly what you’re getting into. From mortgage lending to morning chores, doing your homework pays off when it’s time to make your retirement dreams a reality.
By Bob Shannon
