With prices in Southeast Florida at a low, Baby Boomers should consider buying a retirement home now, even if they’re still years away from actually moving. Allowing renters to pay the bills for now can assure a great buy and a stable position without incurring any unwanted expense until retirement.
Here are some great points to consider:
• Buy a home that can be rented for a rate that, after tax considerations, covers the mortgage, real estate taxes and insurance and hopefully gives you a return on your down payment.
• Study housing trends. Look for demographic and economic data. The information can reveal facts that will influence whether or not to buy. For example, big companies going out of business or large chain store closings may be bad news.
• Don’t forget maintenance. Property managers usually charge a percentage of the monthly rent. Family members may do the job for free but could be ill equipped to make repairs.
• Consider financing. Boomers with sufficient equity in their current home can tap it to either buy their retirement home outright or secure a much lower mortgage.
Prices may be bottoming here in Southeast Florida so buying now for the long term may prove to be a smart choice for Baby Boomers considering downsizing the homestead and related expenses.
George E. Sinacori
GES Real Estate, LLC
Licensed Real Estate and Mortgage Broker
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