Looking forward to retirement

With millions of Americans reaching retirement age and most having of their net worth tied up in their home, many are faced with the fact of selling in order to secure a comfortable retirement.

For individuals with hundreds of thousands of dollars in equity, there are alternatives to selling. One option, reverse mortgages, are becoming very popular with retirees, but many are unfamiliar with this fairly new concept and are instead willing to put aside the emotional attachments they have to their homes, the memories of raising their children, their ties in the community, and all their hard work to make their home beautiful and comfortable in favor of a more financially secure retirement.

Homes in the United States have more than doubled in price since 1996, and even tripled in some markets, thus generating small fortunes for those who bought in the 1990s. The question is: Who is willing to relocate to a far less expensive market, such as Florida? Many are doing just this because Florida’s average home price (low $200s) is less than the national average. Homes in Florida are well built, the weather conditions are favorable, the cost of living is lower than most places in the northeast and west, and many retirement communities offer amenities hard to resist for those seeking an active retirement. Further, because of the low prices, retirees who purchase in Florida will be able to live securely, knowing that they have extra savings in the bank.

Despite the headlines of hurricanes and skyrocketing insurance and property taxes, Florida residency is still increasing at over 1,000 people per day. According to the University of Florida’s Bureau of Economic and Business Research, more than 400,000 people moved to the state in 2005, and more than 430,000 in 2006—one of the single largest population increases in state history. How do these population increases affect the real estate market? Simply stated, all of these new Floridians need a place to live, and most of them purchase existing or new homes. (doesn’t really answer how the population increase affects the market….consider adding more detail here) Florida is a great place to live and any drawbacks must be put into perspective: California has earthquakes, the Midwest has tornadoes, the Northeast is brutally cold—and most of these places have a higher cost of living than the Sunshine State.

With the current real estate crisis, many are taking advantage of the drop in home prices in Florida and are securing their place in the sun for cents on the dollar. It’s a buyer’s market, with many foreclosures, bank-owned properties, and prices that make it feel like 2003 and 2004. Prices may have dropped (which is excellent for buyers), but Florida is still the same. With sunshine year round, a low cost of living, no income taxes, and great golfing an incredible fishing, luxury is affordable. So, whether looking for a waterfront property or a modest and comfortable home, Florida is still America’s favorite place to retire.