Some other reasons that buying a vacation home now to live in later may make sense for you:
Roots
When you buy before you've retired, you start making the area part of your life right away. That helps you build a social network, which will ease the transition when you do make the move. "You get a chance to meet people and be part of the community," says Christine Hrib Karpinski, author of Profit from Your Vacation Home Dream. "It's truly a second home."
Family connections
Kids grow up and change jobs and cities. One way to bring the entire family together more often is by living in a fun, familiar house in a great location. Buying while you still have children at home is a bonus. The kids will feel invested in the place, make friends and want to visit more often when they're older. Six years ago, Nancy Fernandez Mills, 59, and her husband Mark, 58, sold their house in the Boston suburbs. They bought a condo downtown and a country home in the Berkshires in western Massachusetts. With three grown
children and in-laws all living out of town, "our place in the Berkshires has become the place to come for Thanksgiving and other holidays," says Mills, author of Boomers! Funding Your Future in an Age of Uncertainty.
"It's exactly what we hoped would happen."
children and in-laws all living out of town, "our place in the Berkshires has become the place to come for Thanksgiving and other holidays," says Mills, author of Boomers! Funding Your Future in an Age of Uncertainty.
"It's exactly what we hoped would happen."
You can rent to own
In the long term, prices are going to go up. By not acting soon, you risk eventually being priced out of the market altogether. If money is tight, consider buying now and collecting years of rent to defray your costs. Many homes remain too expensive for this plan; the cost of a mortgage, insurance and taxes is higher than the rent the property can realistically generate. But for the first time in years, home prices have slipped enough in some regions for the math to work, including in Destin, Florida.; the Outer Banks of North Carolina;
Branson, Mo.; and the Smoky Mountains, says Karpinski. Her rule of thumb: if one week of peak rental income can cover a month of mortgage expense, the deal is a winner. The trick is getting over your fears. With retirement facing all of us sooner or later, there's only so much time for that.
Branson, Mo.; and the Smoky Mountains, says Karpinski. Her rule of thumb: if one week of peak rental income can cover a month of mortgage expense, the deal is a winner. The trick is getting over your fears. With retirement facing all of us sooner or later, there's only so much time for that.
Find this article at:
http://www.time.com/time/magazine/article/0,9171,1659706,00.html
http://www.time.com/time/magazine/article/0,9171,1659706,00.html
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