The move to buying a second home overseas is gaining popularity, and many retirees are looking to Mexico, Costa Rica, and even further afield for their beachfront properties. Many of these prime retirement areas are experiencing a strengthening realty market, thanks to (our) foreign investment.
Vacation Home Sales Are Up
However, if you are thinking it is too late for a bargain in a prime retirement area, you could be wrong! Some areas are still booming, and even though we have been reading a downturn in realty, some areas are holding steady. The question is why?
Everyone wants to invest in solid realty, but what is the secret? How to choose a viable asset? Is there a secret to being a success in real estate investing? It is always a gamble, investing money will always have some risk, but you can investigate the odds!
For instance, when buying real estate try to project what the future market will be and buy the type of home that will be in demand for a few years to come. This is where you have to take into account not only the economic climate but also the demographics of our society.
For most realty investors, the demographics are obvious in at least one area. The largest population of retirees will be approaching retirement age in a few short years. For people investing in real estate, or wanting to buy a home that keeps its value, this could be an indicator of what to buy. At least one type of home that will be in demand will obviously be the ‘retirement choice’ type of home and in a retirement choice environment..
Condos are very popular. This means that a condo may be a good investment for now, as many of the ‘baby boomers’ will be thinking of buying one in about five years time, when they reach 65 – and retire. (Baby boomers were all born in the first year or two after World War II). They account for a very large part of the population. One theory is that they will be the last generation to have a generous pension, and can therefore afford to splash out on a retirement home. Beach front towns and resorts are already experiencing an increase in sales.
Since retirement equals house move there should be a large inventory of homes for sale in 2011; this is when the baby boomers reach 65. Many people pursue their life dream upon retirement, and perhaps go and live in a warm sunny climate, by the beach, or in the mountains. Either way, it involves buying and selling a home.
Prime retirement areas (including areas in USA) are experiencing above average sales. Buying a retirement home before retirement is the ideal situation. You can always rent it out, or just take your vacation there; it is easier to finance it before the salary must be given up and the pension kicks in. If you are a baby boomer it is good sense to get in now before the real rush happens in 2011.
You can still buy a home and expect it to be a sound investment in many of these choice retirement and vacation areas.