Financial Planning, Retirement, Trends, Vacation homes
Boomers are buying homes to retire in
November 8, 2009 by admin · Leave a Comment
Most of the news we have seen is about how the echo-boomers are saving the housing market by buying their first home. Now we are seeing a trend of boomers buying their next home now, and taking advantage of lower prices, (especially in resort areas) and dirt-cheap interest rates.
The strategies have changed, as the above article reports. In the anything-goes market of a few years ago, it was nothing to take a 2nd on y0ur primary residence and buy a transitional home. Now it takes a 2nd home mortgage and an actual down payment, along with professional management if it is out of town.
Another way is to buy your next home in an IRA using a special trust company. This gets a little complex, as the house is strictly an investment that you or relatives can’t live in while its in the IRA. However, when it’s time to retire and move in, the house is taken as a distribution from your IRA.
