Are you thinking about retirement yet? If your over 50, you should be. Any discussion of retirement should include (and this may be the most important part of any discussion) "do we stay where we are or re-locate"? Many people vacation in Beach areas like Rehoboth or Dewey for a good part of their lives. Why not retire there? Obviously many people do, and more so now as people are realizing huge tax savings in Delaware compared to surrounding states. There are no sales tax in Delaware and property taxes are unbelievably low. Seniors (65 and over) pay an even lower property tax!! A side benefit of retiring near the beach is that your home becomes a magnet in attracting children and grandchildren to visit. You're only three hours from Philly, Baltimore or DC. There hasn't been a better time to buy at the beach in quite a few years. Prices have actually come down since this is probably the worst housing market since the great depression. Historically though, price fluctuations at the beach usually reflect more or less appreciation, rarely do prices depreciate. That's why if you're thinking of retiring here, now might be a great time to buy. Baby boomers like us have fueled an increase in the number of vacation-home sales in recent years. Believe it or not, the National Association of Realtors reported that a record 1.07 million vacation homes were sold in 2006, a 4.7% increase over 2005.
According to the Realtor's survey, the majority of buyers (79%) said that they bought the home to use for vacation or as a family retreat. 34% said a reason for buying was to diversify their investments. Twenty-eight percent said they planned on using the home as a primary residence in the future, and 25% said the tax benefits were a reason to buy. 21% bought because they had extra money to spend and 18% of buyers planned on renting out their homes.
Another advantage to buying prior to retirement is that you get to try out the new location to be sure this is where you want to be long term. You may also decide to rent your home periodically in order to defray some of the cost while you are waiting to move in full time.
Obviously, research is an important part of the process. Picking a good Realtor can expedite this process. Check out our website for more information. GailnGreg.com
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