By Kassidy Emmerson, Contributing writer

"Should I buy a house/condo now for my retirement?" is a multi-faceted question. Obviously, the closer you are to retirement, the better you'll be able to answer this question.

You'll need to consider such things as your finances, the economy, the housing market, location and lifestyle preferences.

Smart Savings | Housing Crunch

Early Home Buying Isn't Just for Baby Boomers

Baby boomers who are nearing retirement obviously have a better idea of their finances, including what they can and cannot afford.

But, according to a realestatejournal.com article in 2007, baby boomers aren't the only ones who are buying a houses and condos now for their retirement. Younger buyers are choosing to invest in real estate instead of simply accumulating retirement funds to use later.

Baby boomers who already have a larger retirement fund can take advantage of this idea as well. Instead of continuing to supplement their established retirement funds, you can divert the money into the purchase of a house or condo right now and possibly make a better return. Instead of socking away windfalls such as inheritances, you can invest the money in your future home.

Location Can Be Everything

Even though you're middle-aged and retirement is looming on the horizon, are you sure you have decided where you're going to retire?

For example, since baby boomers are tending to move to the south and west, if your home-buying mission leads you to a Florida condo, away from your elderly parents in Minnesota, what's going to happen if they need you?

You may be able to rent out your house or condo if you're called away for a long time, as long as you don't mind dealing with the hassles and expenses of being a long-distance landlord.

Is It Wise To Buy For Retirement Now?

With home prices now dropping, this may be a good time to take advantage of the housing bust and go ahead and buy a house or condo for your retirement.

With the market being soft, and sellers eager to do business, you'll have a wide variety of homes to choose from, depending on where you want to settle down.

Retirement Home Can Serve Two Purposes

As a baby boomer who is considering buying a retirement house or condo right now, your home can actually serve two purposes instead of just one. If you buy now, you can use your new home as a vacation getaway until you're ready to move in permanently.

Can You Support 2nd Home?

Even though the housing market is soft right now, and buyers can save money, the cost of everything else is skyrocketing.

After you've met your obligations on your current home, can you afford to support a house or condo until you retire and sell your residence?

As a baby boomer planning on ending your first career in a few years, buying a home to retire at means you'll have double expenses until then.