Have you always dreamed of getting away from it all in retirement and living life on your own terms in the tranquility of nature? If so, you may just be thinking about trading your current home for a larger property so you can homestead throughout your golden years. Homesteading is all about breaking free from dependence on society and being able to live off of the grid.
If this sounds like a retirement paradise to you, your first step should be to hire the right realtor to help you sell your home and find the perfect new homestead property. ReallyList is a leader in commercial real estate and residential real estate news, providing you with information you can use as you and your agent go through the buying process. You can also ask yourself the following questions to come up with a plan.
Should I Sell My Current Home First?
Selling your current home usually gives you more buying power, but this isn’t always possible. When the market is hot, like it has been for months, you may need to make an offer ASAP in order to get the homestead of your dreams. Thankfully, there are some steps that seniors can take to make buying and selling two different homes at the same time less stressful.
Let’s say you need a little more time to sell your current home, so you can put the proceeds towards the closing of your new homestead. If so, you could ask your agent about negotiating an extended closing time frame but know that the sellers may not always accept your requests.
You can also take steps to help your smaller property sell faster but in a sellers market, you shouldn’t have to go to extraordinary measures to have your home sell quickly. As already mentioned, the current market is hot just about everywhere and the inventory of single-family houses is well below the demand from potential homebuyers.
Can I Turn a Homestead into a Business?
Many retirees choose to homestead because they prefer to keep busy rather than spending their retirement relaxing 24/7. There’s a lot of work that goes into being so self-sufficient and if you’ve decided this is the right life for you, you may also be wondering whether investing in a homestead could be a good way to pad your golden years income.
Before you choose homesteading as a financial plan for your retirement, Small Farm Nation notes you should know that you will need to put in some considerable time and effort before you ever start seeing a profit. At the same time, you should also think about the positive financial impacts self-sufficiency can have, such as helping you save money on groceries and other household supplies.
If you are planning on growing your homestead into a business farm or other sort of venture, it may also be worth looking into the benefits of forming an LLC. An LLC is a flexible structure, so if your company grows you can add a partner or investors, and it also allows for pass-through taxation. And of course, it protects your personal assets if your business gets into trouble. You can file the needed forms online through websites like ZenBusiness, which saves you the costs of an attorney, or if you’re willing to do your homework, you can file DIY-style.
What Features Should My Homestead Have?
This answer all depends on what you plan to do with your larger home. Are you going to start a small farm business and sell fresh eggs, vegetables and other homegrown items? If so, then you are going to need plenty of land for a chicken coop, garden and any additional setups.
Are you also hoping to host large family gatherings and grandchildren at your homestead during your golden years? Then your new house should have plenty of space and rooms as well! You could even consider buying a home with a separate addition or mother-in-law suite, which will be perfect for overnight family guests, and as Mashvisor points out it can also be rented out when family is not in town.
Homesteading is certainly an unconventional way to spend your golden years, but it can also be a very rewarding lifestyle. Think carefully about whether this is the right choice for your retirement and then be sure to ask yourself some serious questions to make sure you will find a perfect new property where your goals and dream can come true.