Home as a retirement provision: risk or safe future?

Home as a retirement provision: risk or safe future?

Biberach, Deutschland - The discussion about home as a pension is becoming increasingly hot. Experts warn that the importance of home could decrease in old -age provision. Professor Thomas Beyerle from the Biberach University of Applied Sciences emphasizes that the high renovation costs that are available to homeowners in old age are a decisive factor. According to him, the return from your own home will only be around 2.5 to three percent compared to shares that drop five percent over a period of ten years. Nevertheless, the home offers advantages, such as independence from tenants and the possibility of planning your own living conditions in the long term, such as Schwäbische.de reports.

The question of whether your own home is the right choice depends heavily on the individual living conditions. While many people appreciate the security that offers their own home, they also have to take into account the potential costs in old age. Professor Beyerle points out that the maintenance costs have increased in recent years, which could be an unexpected financial burden for many owners.

advantages and disadvantages of home

A home enables not having to pay a rent in old age, which is a significant financial relief. The independence of rental price increases and the possibility of shaping your own living conditions are strong arguments for buying a house. But reality often looks different. According to Dr. Klein It is crucial that the construction finance is fully paid up to the pension in order to be financially independent in old age. However, if you are confronted with high renovation costs during the pension period, you could quickly get into financial difficulties.

The maintenance reserve is another important aspect. Experts recommend forming reserves before retirement in order to be prepared for unexpected repairs. The amount of these reserves can vary greatly depending on the living space and condition of the house. It is advisable to worry early about the accessibility and future use of the house in order not to experience any nasty surprises in old age.

The future of home

The young generation is increasingly thinking about your own home. Many young people are more flexible and prefer to invest in real estate that they can rent instead of living in them themselves. Professor Beyerle explains that this generation often gets into the real estate market to later move into the property when the children are out of the house. This could further change the traditional view of your own home as retirement provision.

The question remains: is the home as a pension still contemporary? The answer is complex. It offers many advantages, but also carries considerable risks. The combination of emotional aspects and financial considerations makes the decision for or against your own home a personal challenge. A clever approach could be not to consider your own home as a sole retirement provision, but as part of a diversified portfolio that also includes other forms of investment such as stocks or real estate funds.