Retirement with Real Estate

CNNMoney.com had an interesting article on Monday about buying real estate inside of your IRA. It made me think of all the reasons why baby-boomers need to consider (if they haven't already) why they should own real estate as they enter into retirement. Here are a few that I can think of:

1. Buying real estate now, at rock bottom prices, you will have the opportunity to see your money grow as your equity grows. The huge amount of people facing foreclosure will keep them out of the house-buying market for about 7 years. That will be 7 years of a booming rental market where you should have few problems finding qualified tenants to make your mortgage payments for you.

2. You can always sell it if you need cash. When you buy real estate low enough, you have the comfort of knowing that you can always sell it quickly if you need to.

3. Tax deductions! There are a lot of ways to deduct taxes from investment properties. Did you know that you can write off DEPRECIATION from a rental property that produces an income?

4. Snag that smaller place just incase. You may be living in that big house and the kids are leaving for college. You want to downsize but now just isn't the time for you to move out. Take advantage of todays low prices and lock in that dream cottage! Go ahead and buy it, enjoy the tax breaks and the positive cash flow from a renter while you wait. When the time is right and you're ready to move, you already have plenty of equity in the house. You can either enjoy that in the form of a home equity loan, keep it where it is or even use it to refinance so that your monthly payments are much, much lower.

If you would like to discuss real estate investment strategies, whether you are just getting started or about to retire, give me a call today. As an investor myself, I can help you find the deals! 770-862-8002

Michael Bradford
Southern Prime Realty

Active Adult Communities

They're becoming quite popular with the huge number of baby boomers!

These are communities of homes that are built with a 55+ resident in mind. They usually have minimal steps, wide open spaces, a lot of recreational activities in the community and smaller yards (for less maintenance).

Here is a snip from THIS ARTICLE in yesterday's Atlanta Journal & Constitution:

"Two other national home builders have rolled out a strategy in metro Atlanta aimed at another group of transient buyers, retirees. Both Pulte Homes, through its Del Webb division, and Levitt Corp. brand Levitt & Sons have launched a series of communities designed to appeal to "active adults," affluent retirees over age 55 who want to live in a community designed around recreation and leisure activities.

Pulte, in particular, has invested heavily in metro Atlanta with Del Webb communities at Lake Lanier and Lake Oconee and its signature Sun City design in Spalding County south of Atlanta. When first introducing Del Webb in the Atlanta market, Pulte executives predicted that Georgia will become as strong a magnet for retirees as Florida.

With the looming retirement of the baby boom generation, Del Webb is positioning itself as a leader for housing designed to appeal to the healthiest, most affluent generation of home buyers in history."

Cherokee County has such communities and I have seen the beauty and benefits of older adults moving into them. As the boomer generation begins to reach retirment age, the value of the homes in these active adult communities will continue to rise and the demand will be steady.

If you are interested in looking at some of these communities or would like to position yourself to be ready to sell your current home in order to relocate to an active adult community, give me a call today and we'll talk strategy. 770-862-8002.

Michael Bradford

Southern Prime Realty