Let’s just say that Plan A for your retirement didn’t quite work out the way it was supposed to do. Whatever the reasons, the fact is you are a 60-something baby boomer looking to retire on a lot less money than you thought you would have. Luckily for gritty you, sulking is not an option. Here are 10 of our best ideas on what you can do to retire in style - and on a budget.
1. Move, now. Most people about to retire are living in a lot more house than they really need. So downsizing, the sooner the better, is the smart move. You’ll end up paying less in taxes, utilities, and maintenance right away. But you say the market for your home is terrible? It is, but this works two ways - you’ll get less for your current house than at the peak but you’ll be able to replace it with a steal. By selling your suburban home in the northeast or rust belt you might be getting out when the getting is good, while setting yourself up for possible sun belt real estate appreciation.
2. Look for low cost housing areas. Up until a year ago we would caution anyone to move away from the coasts to get a good deal in real estate. In Tennessee, Kentucky, Oklahoma, Alabama, Texas, and Mississippi you can usually pick out a very nice home or condo in a desirable area for less than $100,000. While it is still almost always true that real estate more than 50 miles away from a coast is less expensive, the real estate melt down has created opportunity in south Florida, the southeast, and Arizona. There are some really nice homes in the Fort Myers and Miami areas going for unbelievable prices (the median was $92,000 in October, 2009). For recommendations on low cost housing towns at Topretirements use our free Retirement Ranger (just specify lower than average cost of living when you take the quiz).
3. Look for a short sale or foreclosure. While not for the faint of heart, short sales and foreclosures offer the potential for huge savings (the National Association of Realtors says they typically sell for 15 to 20% less). They are the big reason why real estate prices are so low - other types of sellers just can’t compete with these sales. To succeed you need to be smart and energetic. You need to have a good real estate agent with expertise in short sales and foreclosures. You also have to use common sense. To find good deals spend time cultivating banks, checking out neighborhoods, and talking with residents (See NY Times article about the Cape Coral, FL real estate market , where over one fourth of the homes have been foreclosed). Many experts advise individuals from buying at auction because of the risks, which can include faulty title. In south Florida you can even go on foreclosure tours as a way to find properties. Just be careful, you are usually buying a home “as-is” with no recourse. (see foreclosure resources at bottom).
4. Look for a resale. Many marketers of new 55+ communities have a lot of unwelcome competi...
Click here to read the rest of the article from TopRetirements.com
