As time goes by, many homeowners observe their property values appreciating in a strong market, and wonder about further real estate investments. One product that financial analysts predict will continue to hold value is a condo or townhome in a desirable retirement destination. If this is a good option for you, the likelihood of a positive outcome will greatly improve when you seek guidance from a real estate professional. There are countless variables involved, and a long list of questions you might not think to ask. A spacious home and yard are wonderful current assets for your family, but might become an eventual headache when it's time for retirement. We've all seen homes in our neighbor-hood that seem to say, "My owner is too old to take proper care of me anymore." Why are long-term owners often reluctant to make a move? With housing prices currently at an all-time high, it is difficult for such an owner to reinvest in a new home after selling the one they currently inhabit. Even a condo or townhome is expensive. However, if that owner had selected a target retirement location some years before and had made a purchase, there would be little hesitation to sell their home when the time is right.
With an investment property in place, the transition is a fairly simple matter. The owner lets a tenant's lease expire, then takes occupancy. Subsequently, the sale of a former dwelling — in many cases completely paid for — puts a significant amount of cash in the bank, and the retiree into a new home where the upkeep is minimal and the amenities are a blessing.
If this scenario applies to you, make an appointment with a real estate professional you already know and trust. Your agent will help you weigh two key issues in particular — finances and logistics.
Make a purchase that will provide you with positive cash flow until such time as you choose to occupy it. Even with the potential tax advantages of an investment property, a constant annual drain on your finances can make your investment a nuisance rather than a benefit. Your agent will network with financial companies to help determine what's best for you. Also, consult with your realtor to select reliable property management. Will you have the time to maintain an investment dwelling until you live there? What if it's far away?
A dependable management company is worth its weight in gold when maintaining a long-distance property. Again, through professional networking, your real estate agent can make arrangements to select a reputable company.
Considering a retirement investment? A consultation with your real estate professional will help you make the perfect choice for you, your family, and your future.
This article pertains to data received around 06/29/05. For more information please contact us!
Ryan Mills
The M & M Team
Prudential California Realty
Specializing in buying and selling real estate in the Conejo Valley, Thousand Oaks, Agoura, Oak Park, Newbury Park, Moorpark and Simi Valley areas.
(818) 917-7782
www.TheMMTeam.com
Ryan@TheMMTeam.com
