Housing Silver Lining: Retirement Homes Are Cheaper

Housing Silver Lining: Retirement Homes Are Cheaper

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Our new president, Barack Hussein Obama, has declared that our country needs hope, a change in the way that we do things. Given the wholesale slaughter that the housing industry has gone through over the past year or more, a change for the better would most certainly be welcome.

beach houseIn the midst of difficult times, there is a silver lining shining brightly on the dark cloud of the real estate market: retirement home values are plunging which could mean that upcoming retirees may be able to find a bargain in 2009 if they take action.

Home Sweet Retirement Home

According to the February 2009 issue of Money magazine (Home Sweet Retirement Home) home values in many retirement areas have fallen 30% or more vs. a 23% average drop in house prices nationwide. This means that even if your $500,000 home is now worth less than $400,000, all is not lost: that retirement home you’ve been looking at in Florida, Nevada or Arizona has dropped at a faster pace, perhaps lessening the blow you’ll face if you are planning to sell this year or buy a second home while keeping your primary residence.

Money recommends four steps for your consideration when looking to buy a retirement home:

Know What You Can Afford — Very good credit in order to finance a second home’s mortgage is necessary. Don’t pour all of your nest egg funds into your retirement home; make certain your portfolio is diversified.

Pick Your Sweet Spot — Most certainly you’ll want to buy a home when prices have bottomed out or at least have the promise of appreciating long term.

Drive A Hard Bargain — Even in popular retirement communities, the market is in the buyer’s favor. This is especially true if the owner is maintaining two or more residences and is looking to get out from underneath one of them.

Work With An Ally — Money recommends that you work with a buyer’s agent, a real estate agent who will work on your behalf. True, they’ll get their commission from the seller, but when they’re legally retained to represent you, a knowledgeable buyer’s agent can be your advocate.

The challenges of today’s housing market won’t be easily overcome but with patience, determination and hard work (research) on your part, the dividends in the form of an excellent price for a retirement home can pay off for you.

Adv. – You can save on your next home purchase while still keeping your other expenses in line. Why not allow SayLowerBills.com help you find ways to reduce your medical expenses, housing and debt obligations in 2009?

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Categories: Home Buying, Home Tips