Many of the Realtors and financial planners on the Treasure Coast of Florida are reporting an increase in couples aged 35 to 55 buying ‘retirement homes.'
Financial planners quoted in The Wall Street Journal say they are helping younger buyers settle on places to call home that will appreciate in value in the long run.
They say it's happening all over the U.S. Especially in traditional areas of Florida and the South East also in Arizona and Nevada. More young people are looking for waterfront property or country cabins. And they are willing to spend money to do it, from $100,000 to over $500,000.
One theory is that younger buyers want to enjoy their money, not just stash it and watch it stack up. They may want to invest in their families and say buying a vacation or retirement home is a good way to do it.
Many of the affluent couples have already built up their emergency savings, are contributing both to their children's education plans and their own retirement plans. Now, they want to put money somewhere else. And, with the current real estate trend, prices have become very attractive.
Advisors quoted in Business Week say, even if you have the cash, financing a retirement home can make perfect sense. The interest is tax-deductible, and a mortgage frees up cash for other investments, allowing you to diversify your investments and lower your overall financial risk.
Those who wait until they are ready to retire could find that prices and mortgage interest rates are much higher than they are now. The availability of choice homes and locations may also be less available as the ‘boomers' start retiring.
For information on retirement and second homes in the Stuart, FL area, please contact Gabe Sanders or Susan Maxwell at Treasure Coast FL Homes or GabeSanders.com.