For those who do not Plan to retire for a long time, buying a retirement home has many advantages. For starters, a retirement home may be applied as a holiday and weekend home. And, as the children get older, it is a fantastic way to entice them to see. Baby boomers, still 20 or so years from retirement, have fueled a boost in holiday home and retirement home sales. According to the National Association of Realtors, reports for 2006 listed 1.07 million holiday homes sold. Holiday and retirement home sales were up 5 percent from the prior year. Following are some interesting statistics on second homes:
- 80 percent of those buyers will use the house for vacation.
- 35 percent said they were more interested in diversifying investments.
- 25 percent said they spent for tax benefits.
- 30 percent of buyers see these houses as their primary retirement residence in the future.
- 20 percent plan to lease their holiday or retirement homes.
The Investment Decision
Many young home buyers see this as making a great choice with their personal finances. Rather than investing in the current market, they are opting to invest in their future real estate needs. Home buyers also look at these purchases as an investment in household. Purchasing a retirement home early enables them to enjoy the advantage before retirement. Second homes are a terrific way to spend quality time with family and friends. Additionally, the location of this second home might not be as cheap in the future.
Second home buyers are not people tapping in their tax-deferred IRAs or 410plans; they are using funds they’d have placed into investments with no special tax benefits. They key question is If you can afford to cover your future homeownership needs now. When researching the price, variable in maintenance, taxes and insurance, together with the purchase price of the retirement home. If you cannot afford to live in two houses, consider investing in a retirement home and renting it out with memory care. The rental income might even supply you with extra income as well as covering the cost of the house. Although this scenario does not offer much opportunity for you to use the home before retirement, it lets you purchase in a community that might be less affordable as you near retirement. Bear in mind that unique properties, like those found on lakes, golf courses, or in recreational settings, tend to love more than those located in subdivisions. A home is an asset as Well as a source of pleasure and satisfaction. If your finances permit, investing in a retirement home today could lead to an excellent investment for your family later on.