The Stock Market sucks, returns on FDIC insured accounts are abysmal, and taking a vacation is expensive. Have I just described your baby-boomer life's issues. I have a simple solution with the perfect timing for your 5-10-20 year retirement plan. Many of my clients are purchasing Vacation homes, where they love to recreate and can see themselves living after retirement.
The soft market presents great opportunities For retirement property planning. Buy now while prices are down and rent until you can move into your mountain home full-time. There are two options in a resort town, rent your place short term and be able to vacation 14 days a year while still making periodic maintenance visits or have a yearly lease which relieves you of the utilities and gives you a fixed monthly income. Both of these options allow for depreciation , interest deductions and other pre-taxes expenses.
Aside from the income and tax relief this strategy can provide, it also allows you to explore and become comfortable with your future full time surroundings. The Ski resort clients who have retired to my neck of the woods have found recreation, entertainment and friendship with their neighbors and are thrilled with their choice. The Lack of income tax , no broad based sales tax, and nearly a million acres of White Mountain Nation Forest has made New Hampshire a great choice for future retirees.
What if we change our mind about our retirement location: the sweet thing about this pre-planning real estate purchase is with a simple 1031 exchange you can move on to another location deffer your capital gains and so long as you keep the newly acquired property in an active rental for 2 years (or more) you can still retire there when you're ready.
Our clients are looking for choices and real estate investments especially in the long term are looking very attractive compared to other places to park your savings these days. Let your clients know you have done your home work and have some great values to offer them.
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Your-White Mountain New Hampshire real Estate Expert
steve@alpinelakes.com toll free 800-926-5653 /cell 603-381-7898
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Steve.. This is a wonderful idea, I shoud check into it too. I hope you get a lot of activity (may your phone ring) from this post. Val
Steve - 1031 exchange is a good strategy for vacation property. I like the way you think.
Steve...I did this very thing 6 years ago when things were jsut starting to move up. A 1031 and I was all set.
I am now looking at possibly another 1031 deal just for the investment end. It's not going to stay down forever!
Val, Your clients with money are looking for an investment strategy, why not help them move unproductive funds into an enjoyable asset the will serve a dual purpose in the future. Thanks for you comments. Steve
Judy, we know the reasons to buy real estate make sense the hart part is convincing a client this is a better option than some of the others they have already tried. The 1031 exchange option is a great one, and so is a vacation home with income that becomes a paid-off retirement place.. Steve
Bill, the people I have met that use the 1031 exchange are all very successful in their investment strategies, so that tells me if it work for them we should encourage our clients to consider it as an option. Steve