Building land and buildings are equally expensive in the city. For your home not to become a source of costs, you need to pay attention to intelligent financial planning and optimal retirement planning. So you can enjoy your home at every stage of life, without any worries.
A home is an incentive to save. To achieve this dream, many strive to save, even at a young age. Many homeowners and homeowners invest their savings or part of their pension fund’s funds in buying a home.
Credit for pensioners
Do banks consider solvent even those over 65 or the house suddenly becomes a “flat rate risk”? Since the demands for mortgages and their financial sustainability have increased, critical questions arise. Not infrequently, the owners of older houses find themselves in the following situation: most of their savings, often also other liberties and inheritances, are linked to the fund.
If the elderly wish to afford some things, old age pensions are soon consumed. But, on paper, these owners are wealthy. If the property is kept in good condition, the value increases over the years. But a property inhabited by the owner generates neither liquidity nor dividends like securities or the like. The classic dilemma: “being millionaires short of money”. The capital of a building cannot be condensed.
Suggestions for financial planning
Define your personal goals: savings target for your own home? Guarantee of a home for old age? Save to form a family? Analysis of the current situation: surprising but true: many do not keep accurate accounts of income and expenses. However, this is a fundamental operation, for example, to determine future housing costs or the financial sustainability of one’s housing needs.
- Especially as a homeowner, ensuring the risk is essential. Generally, a family in your own home depends a lot on a partner’s income. Check: how good is the insurance cover (pension fund, accident insurance provided for by law) in case of illness or disability? To assess the risk, it is also necessary to consider possible misfortunes (disability to permanent work, death). Homeowners are advised to carry out an accurate social security analysis and, if necessary, take out supplementary insurance (risk insurance, loss of earnings insurance).
- In the long term, the plans created, and the objectives set must be checked periodically. Are the finances for the coming years in good shape? Will, the ownership of real estate, subsequently lead to higher unscheduled investments (e.g., major renovations)? Do you have the necessary funds available?
- Financial planning and retirement planning must be in harmony with the various stages of life. At 25-30 years, many do not think about retirement provision. Do they have other goals and dreams to accomplish, maybe a language study trip or abroad? Other phases include the formation of a family, career advancement, or even the purchase of a home or one’s own home. At that point, good financial planning and the financial security of the partner or family are in the foreground.
Is money for old age enough?
In subsequent life phases, social security planning begins, but also succession in one’s own company and hereditary planning. Today we find ourselves more than ever facing the reality of retirement in decline. Pension experts advise you to come to terms already after the age of 55. On the pension fund certificate and with the help of a calculation of a future pension with the AHV, it is possible to estimate income and retirement pensions for the future. To protect you from unpleasant surprises, it is worth starting this planning in advance. In doing so, even if financial gaps were opened, there would be enough time to fill them.