Category Archives for "Retirement Real Estate"

Condos: Perfect Retirement Real Estate

By Andrew John Cocks | Retirement Real Estate

Condos: Perfect Retirement Real Estate

Article by Antoinette Ayana

Even in our shaky American economy where retirement funds are being re-appropriated to help with monthly bills and emergency savings accounts are quickly depleted to fill gaps left by unemployment, most of us still think about that glorious day when we get to retire. That first morning waking up without an alarm clock will be dramatic and significant for many hardworking Americans across the country. We feel like we have invested our best into our families and our careers and now it is time to take a little relaxation and recreation for ourselves.

Many retiring individuals and couples have houses that are far too big for them. All of the children have grown and moved on to have children of their own. The house may feel just right around holiday season when everyone comes back to visit, but for the rest of the year, it’s just too big. There is absolutely no need to keep paying expensive monthly energy bills on a property that is larger than you need. Due to this, many retired couples are looking to invest in property. One of the most sound retirement investment properties continues to be condos.

Whether you are thinking of a little space on the beach or in the mountains, condos are available across the country and around the world. Most retired couples enjoy the smaller space because it is less to clean and costs less to keep warm or cool. Instead of having everyone over to your house for the holidays, you can fly to visit them and let them clean up the big mess after everyone has gone. Condos are perfect retirement communities and many have tenants that are also retired in order to foster an atmosphere that is appreciated by everyone that lives there. Your neighbor is likely to be just like you and you both can enjoy the golden years without alarm clocks.

If you are considering retiring and planning for your future in the next couple of years, it is in your best interest to look into retirement real estate such as condos. There are beautiful units available right on the beach so that you can enjoy the sand and surf year-round. If mountains are more your style, properties in popular tourist destinations that provide quick access to ski facilities are also available. In addition, if your condos are in popular tourist destinations, you have the option of renting it out or sharing in a time-share facility in order to save you even more money year-round.

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Retirement Real Estate of the Future

By Andrew John Cocks | Retirement Real Estate

Retirement Real Estate of the Future

Article by G. Brian Davis

Fifteen years ago, retirees wanted a spacious home overlooking a golf course in Florida as their ideal retirement real estate. Today, things are looking a little different.

Polls among Americans aged 55 or over are showing new and different trends. Many are still attracted to Florida and Arizona for their warmth, but the often-high cost of living, and cost of real estate/rental agreements, in these states are leading many to reconsider. The two top retirement states now? North and South Carolina, according to home builder surveys.

Further, expensive golf courses no longer rule the retirement roost. Hiking trails, bike paths, and other amenities that are friendly to the active lifestyle are now higher on these older Americans’ priority lists.

Then there’s size; most older Americans are now quite serious about downsizing, for several reasons, particularly the lower cost and the lower maintenance. These two reasons are even further connected by the fact that most retirees list service and maintenance amenities, such as housekeeping, landscaping, and home repair as services that they want in retirement rental agreements or real estate purchases.

What’s the common denominator? In a word, money.

Today’s economy has many older Americans retiring earlier against their will, and most retirees will be on fixed income. To make things worse, many will not recover nearly as much money from their current real estate as they were counting on, and which pulls the reins in even tighter. And then there’s fact that many of these older Americans have aging parents who require a lot of time and money to care for, and they themselves grow likelier to develop their own health problems, or a spouse with health problems, that cost a great deal of time and money as well.

Older Americans will search for low cost of living, inexpensive rental agreements or real estate prices, and as much bang for their limited bucks as possible. Among homebuilder surveys, they elected for less frills (such as entertainment features and wood-burning fireplaces) than their younger counterparts, and more safety and ease-of-use features, such as non-slip flooring, bathroom grip bars, garage door openers, and easy-to-use thermostats and windows. Analysts expect the demand for luxury inclusions in rental agreements and real estate for retirees to drop steadily over the next decade.

They do want easy access to services, however. Rental agreements and real estate locations with food, shopping, and entertainment services within walking distance are highly valued, which ties into the desire for an active lifestyle and a reduced dependence on driving and expensive vehicles generally.

These older Americans reaching retirement age will want something different from what their parents wanted, and from what younger Americans want, and these desires will all center around affordability and ease of use. They still desire warm climates, but their priorities are shifting towards low cost of living areas, with inexpensive rental agreements and condominiums with high availability of services to make their lives easier. While California, Florida, and Arizona are still high on the list of retirement destinations, less expensive newcomers are starting to make headway, and are expected to continue to do so.

A real estate investor and landlord, Brian also writes for dozens of ezines and online real estate resources, and manages EZ Landlord Forms, a one-stop shop for landlords that offers state-specific rental agreements and other landlord forms, articles, and directories of resources.

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Nonqualified Real Estate Retirement Plans

By Andrew John Cocks | Retirement Real Estate

Nonqualified Real Estate Retirement Plans

If you’re in the field of commercial property management, you might own an apartment building or two. You might have a retirement plan separate from your investment, and it is probably a qualified retirement plan.

Qualified retirement plans are the IRS’s answer to the people’s complaints. The employer contributes to the retirement plan now and the employee pays taxes now, or the employer contributes to the plan at some later date and the employee pays taxes at some later date; this is how it was previously. The IRS then came out with qualified retirement plans which allow the employer to contribute to the plan now, but the employee can delay paying taxes until some future date.

In exchange for these generous tax rules, the IRS imposes strict restrictions. Certain nondiscriminatory rules must be followed as well as a number of other rules.

All in all, these rules end up being very restrictive, effectively “sanitizing” the plan; they make the plan not really that good, but not really that bad either.

Non-qualified plans are often more generous but are subject to more strict tax rules, but not always. Non-qualified plans are a broad category. Essentially, they are not a category, they are simply everything other than qualified plans.

Now, let’s make our own non-qualified plan. We’re looking for four main things:
– Liquidity
– Tax advantageous
– Safety
– Adequate rate of return

Liquidity is important because you may need to access your funds in time of great financial danger. Although Douglas R. Andrew touts this as a critical factor in his book Missed Fortune 101, we tend to side with the idea that liquidity, or marketability, is second in importance to the other three factors.

We assume that anyone who will be investing will already have saved up emergency funds and has access to enough emergency credit to get by in event of an emergency.

Tax advantageous is obviously important because you want to keep as much money as possible.

Safety, again, is obviously important, because you don’t want to lose your money. The risk-reward curve is garbage. If an investment isn’t safe, then it isn’t an investment. It’s a gamble.

Adequate rate of return is arguably the most important. Without a good rate of return, what’s the point of investing? The goal is to make more money, isn’t it?

So, with this in mind, we are going to take the equity in our home, and put it in a universal life insurance policy all at once. This procedure must carefully be examined; you have to find a universal life policy with a good track record and who’s fees added to the home equity loan payment are less than the percentage usually made on that life insurance policy. Most policies will pay you far more than this. So, what you can do is take out loans on the policy, but only in the amount that the policy can afford. Since universal life often has a minimum guaranteed earnings credit (usually one percent), your money is safe, going to get a good rate of return, tax advantaged, and liquid. How does a qualified plan sound now?

Cody Scholberg is an expert author on real estate investment and commercial property management and writes at commercial property management guide. A lot of people think about buying investment property in places where they want to retire someday. But should you buy the unit you want to retire in? Or should you buy something else that has better investment fundamentals (like positive cash flow) and convert it to your dream retirement home later? Greg takes calls from two investors; one who did this wrong and one who has a chance to do it right.

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