Choosing the Ideal Real Estate after Retirement

By Eva R. Marienchild

Where do you want to live when you retire? Do you want mountains or valleys? Ocean or lake view property? Most people want the good life they enjoyed while they were working, but lots more of it. If you always went to the shore on the weekends, you probably will opt for a place near the sea after you reach retirement age. If you liked the mountains, the Poconos may be your idea of paradise-on-earth.

But there are things you should consider before plopping down your hard-earned cash for a piece of property:

1. Know the Tax Laws. Research the tax situation. If you're staying in the United States, each state has a different set up, but in some areas you don't have to pay income tax if you're receiving social security or retirement income. Also, don't forget to look into the town's county, state, city and sales taxes, if there are any.

Another consideration is that some states have a personal property tax that takes a hefty chunk out of your taxes if you have substantial amounts of real estate. In some states there is a benefit to retirees with their own homes. These are usually named homestead exemptions and they allow individuals to pay lower taxes.

All of this and more information will be available online. Go to the state's website (all governments have one, now) and check out the state tax structure.

2. Condos or Farmland? Carefully check out the type of housing that is available in the area you are considering retiring to. You may have fallen in love with the ambience, with the people, and with the local stores while on a short vacation, but if you've got your heart set on condo life (or coop life if you're looking into metropolitan living) and there are only farms for rent in the vicinity, you might decide you've made a mistake.

If you don't want to put a damper on your retirement dream, start searching the classifieds, or speak to a real estate broker one full year before you are due to retire. Tell the broker you're just putting out feelers so s/he doesn't get her/his hopes up when sending you current listings. This heads up will give you plenty of time to change your plans, if you need to.

3. Healthcare after Retirement. We all will need basic medical facilities a reasonable distance from our home after we retire. Even if you are in the pink of health, and you anticipate never having to see the doctor except on an emergency basis, it is good to have access to quality emergency care.

The dental visits, too, should continue apace. A cleaning every six months or so is usually sufficient to prevent dental problems down the road.

If you are a holistically-oriented individual, make sure you have access to a health food store near you where you can purchase your oils, tinctures and supplements. The idea is to not interrupt the lifestyle that works best for you.

4. Weather Permitting. Don't forget to look into the weather around the area where you are planning to retire! Is it going to be hot and sticky or wet and wintry - and will you be OK with the prevalent weather forecast in that geographical region? As a rule, southern regions in the United States tend to be sunny and hot, and the northern regions see a bit of snow.

5. Property Outside of the U.S. Some people are leaving the United States in the search for affordable, out of the way property. If you're looking for an exotic locale, you might find a real estate bargain in Costa Rica, Mexico or Panama.

It is recommended that you rent for a few months, before moving permanently to another country. Explore the contract laws and become familiar with the currency.

If you find a piece of property that appeals in another country, don't use the same lawyer who is doing the selling to help you with the buying. That's usually a conflict of interest in any country, but will prove especially confusing in a region where their laws are unfamiliar to you. Do a Google search for more information on each of the following countries:

Costa Rica has become hugely popular with baby boomers as a place to retire, due to above-average infrastructure and housing that is well-constructed and plentiful. And costs are low! Many Americans who couldn't afford to do so in the States hire servants once they move to Costa Rica.

In Mexico, with its spectacular climate, you don't need to be a resident to be a landowner, but if you plan to reside there you need to go through a formal procedure that includes proving you have a regular income. The prices, especially near the coast, have risen but the dollar still goes pretty far.

Panama is boasting sleek and modern architecture and panoramic views as high rises are built to accommodate the influx of foreign dollars. Properties are going for millions, but there are deals to be had.

Eva R. Marienchild is an accomplished communicator: an author, editor, poet, artist, speaker, and life and career coach. Eva's specialties are health, home, nutrition, environment and spirituality.

© Doityourself.com 2006