You likely have a pretty clear picture of retirement dream home—whether it's a cottage in the Connecticut countryside or a lakeside retreat.
Well, AARP suggests it's time to stop dreaming and start buying: In a recent article, they featured four couples who achieved their dream on a very ordinary budget ("Can You Afford Your Retirement Dream Home?" March 2015).
Take the Grushes, who bought a Wisconsin farmhouse for just $172,000. What makes it an ideal home for them is the garden and its huge bed of perennials.
AARP provided tips on how you, too, can find a dream home in retirement:
For those considering purchasing a home, here are some key questions you should ask yourself:
As AARP's four featured couples demonstrate, you don't necessarily need to over-stretch yourself financially in order to afford your dream home. Don't take the maximum amount a lender offers you just because you can. The general rule is that your mortgage payments (and other housing costs) should not exceed 28% of your monthly income.
What does your dream home look like? Tell us about it!