According to Community Associations Institute, over 70 million Americans live in a community association. A significant portion of that 70 million is made up of retirees. Now, the phrase “retirement home” can conjure a certain image, but the fact is today that people actually have more options than ever before when it comes to selling the business, quitting the 9-to-5, and choosing a lifestyle that fits them. Whether it be golf, beaches, fishing, exercise, swimming, or travel that will occupy those “golden years,” there is a home and a community that will work for you. Here are five things to know (or find out!) when considering a community for your retirement.
- Amenities
This one is obvious: what options exist? If you desire a pool, tennis, or gym, you should find out what is available – and what it costs. Just like a car salesman, those condo reps will be only too happy to show you the great features, but conveniently forget to mention that they are not included in the base price. What services are included in you plan, and what might you have to pay extra for?
- Maintenance and Upkeep
Who is responsible for the lawn? The gutters? Snow removal? If you have spent thirty years mowing that lawn and you are ready to hand off the weedwhacker, make sure to find out that grass cutting services are included in your assessments.
- Assessments/Dues
If you buy within a community association, you will have assessments to pay for all those lovely amenities, as well as the upkeep you no longer have to worry about. Find out and budget for those monthly assessments. Frequently in larger communities there may be more than one association; do you pay them together or separately? Has there recently been a special assessment, and will you end up responsible for that?
- Reserves
Community associations must maintain reserve funds to provide for large-scale capital expenditures. These may include roof replacement, drainage issues, façade maintenance, plumbing, or HVAC. Just like you did when you owned your home, the association must save carefully for such expenditures over time, to be sure that it can afford those large projects. You don’t want to have budgeted frugally all those years only to be left to pay for someone else’s shortsightedness. Check to see that the reserves are adequately funded.
- Restrictions and Approval
Maybe you are moving into a fixer-upper, with grand plans on a gorgeous renovation. Perhaps you have a green thumb and will keep rosebushes. Or possibly you intend to purchase this nice little place and spend winters there, but rent it out during the summer when you are away. Check the community’s restrictions and policies first to be sure that your goals fit in with their rules. It is much better to find out in advance that your planned deck is restricted to certain materials, or that smoker grills are prohibited.
In a Nutshell
Retirement, just like most everything else in life, will go most smoothly if you plan for it in advance. Know what you want, what you expect, and what to avoid, and then go shopping for that dream retirement home!