Do You Own Your Retirement Home?
Maybe you’re not ready to move into it, but that doesn’t mean that you shouldn’t take advantage of the present opportunities to acquire the home you want to live in during retirement. The combination of the low interest rates and affordable home prices may never be this good again in our lifetimes!
Let Your Tenant Buy It For You
The rental market is strong, and a tenant could pay for your retirement home. The cash flow is attractive and the yield is bound to be stronger than what you’re currently earning. Even if you don’t retire to this home, it could be a placeholder to control the costs of the home you do move into.
One option is to finance it with a 15 year loan that will have a lower rate than that of a 30 year loan, and it will obviously amortize in half the time. Even if you don’t have the home paid for by the time you retire, your equity will be greater.
Ideally, if you sell your current home when your move into this retirement home, you may be able to take up to $500,000 of tax-free gain for a married couple. That profit could be used to fund your retirement.
With home prices and mortgage rates certain to rise, this may be one of the best decisions you can make. We want to be your constant source of real estate information, and we’re committed to help you from purchase to sale, and all the years in between. Let us know if we can help.