Is Home For You to Retire Or to fund your Retirement?

You probably heard those home buyers at new property launches being interviewed saying: "This is for retirement investment." There are just too many home buyers thinking that their residential home can be used to fund their retirement.

But, before you start thinking and counting the value of your residential home and your estimate of its appreciation rate. You may want to start thinking about the implications. There are just too many uncertainties in your future, and counting your residential home may mislead you into saving too little or not investing wisely.

A residential home is a lot more than something you can just trade in for another investment. After living in your residential home for many, many years, and in your old age you are likely to develop emotional ties. It has neighbours that you like or close friends nearby.

Your home may represent years of your effort in tailoring it to meet your tastes. The furniture, decorations, mementos, and even quirks are things that you have learned to enjoy. It may have a emotional or support system that helps you to calm down when you reach home to relax even though you are having troubles in your office or elsewhere.

So, are you too thinking that your residential home is part of your retirement fund. I don't. I treat it as contingency fund of the last resort when everything else fails.