With prices in many markets on the lower side, Baby Boomers might consider buying their retirement homes now. This might make good financial sense, even if they are still years away from actually living in it. The home could be rented and the renters will pay the bills until it is time to move in. A lot of people have been viewing Marin Real Estate, as well as, Mill Valley Real Estate when it comes to looking for that retirement home.
Below is some advice for Baby Boomers who are considering this strategy.
Study up on housing trends. Ask the local state or planning department for economic and demographic data. The information can reveal facts that could have an influence on your decision to buy. For example, military base closings or big companies going out of business can be bad news.
Consider Financing. Baby Boomers with enough equity in their current homes may be able to tap it to either purchase their retirement home outright or secure a much lower mortgage rate compared with a loan at a rate which is often offered to purchasers of investment property.
Shop Carefully. It is best to buy a home that can be rented for a monthly rate that, after tax considerations, will pay for the mortgage, real estate taxes and insurance.
Don’t Overlook Maintenance. Keep in mind to consider who will take care of the home in the owner’s absence. Property managers usually charge 6% -15% of the monthly rent. Family members may be willing to perform any work for free, however they could be ill-equipped to do the job if they are in experienced.