Classic Properties REALTORS ®



Posted by Classic Properties REALTORS ® on 2/24/2019

Whether you're an active senior or have a mobile job, heading to warmer climes in the winter, or cooler temperatures in the summer offers unique challenges and advantages. Buying a second home in your favorite locale, rather than living in an RV or rental, could be the perfect decision for you.

Be close to family

When your adult children take jobs that move them across the country, looking for a second home to spend time nearby—to see those grandchildren, for example—for holidays, the summers, and other special times makes perfect sense. After all, just because you want to be close by sometimes doesn’t mean you want to be there full-time.

Eventually, however, you may want to relocate near to family permanently as you age and find travel between your homes cumbersome. If you purchase your snowbird home with the future in mind—being mindful of stairs, access to exceptional healthcare and other age-related issues—your transition to living there full time will be smoother. 

Be fiscally astute

Second homes in tax-advantaged areas—states that do not have an income tax—may reduce your tax liability. Several states including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming fall into this category. In addition to income tax savings, some areas have a lower property tax than others. The savings on property tax in one state might offset its income tax and vice versa. Before buying property in one of these states for tax advantages, speak with a qualified tax consultant about how it might affect your bottom line.

Be investment wise

One question you may have about a second home is “Can I earn income with it when I’m not using it?” The answer is “yes” and “no.” Online rental portals make the idea of a holiday rental more attractive than when you marketed it with a For Rent sign in the window. But, they don’t always make enough to pay for themselves. Coveted rentals in holiday destinations have high seasons, low seasons, inclement weather, and generally off years and the cost of maintenance and turnover between renters, general repairs and damages might outweigh the value. Unless you intend to rent out your property during the high season, which means you can’t use it then for yourself, you might make enough to break even, but most experts warn that your holiday rental income may not cover your mortgage. If you decide to rent your snowbird home, don't rely on the property to pay for itself.

If you've seriously considered buying a second home and wonder about the advantages and disadvantages, consult a local real estate expert for information on second homes in your desired location.




Categories: homebuyers   retirement  


Posted by Classic Properties REALTORS ® on 12/29/2013

It doesn't matter how old you are someday you will hopefully retire. According to Pew Research Center, there are 75 million baby boomers in the United States and retirement is coming quick or may already be here. So if you are a boomer or just thinking about retirement and feeling like you are not prepared there is still time to get on the right track. Here is a retirement checklist to help get you started: Know how much you need to live The first step in planning for retirement is to know how much money you will need to live. Make a list of all of your expenses and your sources of income. If your costs outweigh your guaranteed income you may need to reevaluate your costs. Rethink your retirement savings plan Unless you have a pension you will not have a set amount of money to live on for your retirement. If you have a 401k or other employer-sponsored retirement plan you will need to plan to make that money last. It may be best to meet with a financial planner to determine ways to maximize your income stream. A financial planner may also help you consolidate your retirement accounts. Understand your social security benefits Depending on the age at which you start social security withdrawals you may have less money than you thought. Social security withdrawals before the age of 70 could result in 20-30% less in benefits. Deciding what age you will retire and when you will draw on your social security benefits is an important decision. Plan for inflation Like it or not the cost of living goes up. The cost of health care also continues to rise and without proper planning for inflation in living costs and health care your retirement income could run out sooner than you planned. A good start for planning is to know that over the past one hundred years the average inflation rate has been 3.4%. Have a will It is important to establish a will and/or living will. This will help you and your family make important decisions regarding health care, long term care and estate issues. Tackling retirement planning ahead of time will help you begin the next chapter of your life worry free and allow you to plan for the fun times ahead.




Categories: Money Saving Tips