Florida Real Estate for Retirement

Retirement in the State of Florida – Here is what you need to consider

It is no secret that the financial world is changing at a record pace. Just keeping things together for day to day living is enough of a challenge and then you start looking towards retirement. A daunting task unless you have the inside scoop on winning the lottery. For those of us who rather not rely on the lottery, other plans need to be made. For most American families, their home is the single greatest financial investment and many people count on the equity they have built to be a key feature in their retirement strategy.

A beachy retirement plan

The traditional retirement plan

So you are planning on a Florida retirement. This is a pretty popular plan and Florida does a good job at retirement. But how many of us would be ready to take the leap into retirement in one step? Could there be a way to ease into things? One strategy is to purchase your Florida home and utilize the rental market to offset the cost of the purchase.

Ample Florida Real Estate Inventory

What does this plan look like?

First things first, you need to determine if your home is better suited for the annual or seasonal market. There are a lot of factors that go into making that decision based on your own personal needs as well as the features of the property.

Ocean front is never a bad thing

Seasonal Market

There are two main factors to consider when considering the seasonal market. 1) Is the home located in a community that allows for short term rentals. The home owners association will have guidelines already set that may restrict if you are allowed to rent, and how long you are allowed to rent for per year. 2) You will need to be prepared to have the home fully furnished, and this means everything from seating to kitchenware. It is no small undertaking and when it comes time to move you will find yourself with two of everything. Furnishing may not be an issue if you are able to find a property you like that is being sold as furnished.

Live among the Florida exotics

Another factor to consider is how long you expect to keep the property on the rental market, many of the furnishings may come to the end of their useful lifespan during the rental period and you can donate or dispose of them when you relocate. The added value of seasonal market is that you will also be able to allocate time for you to utilize the property yourself.

Smart Investment Strategies

Annual Market

Within the annual market we find homes that may not be located in the more traditional vacation destinations with longer drives to tourist draws such as golf and beaches. There is still a thriving annual rental market thanks to the steady population growth of Florida. With annual rentals you also have more security with an income stream as you are not vulnerable to canceled vacations as a result of hurricanes.  An annual tenant obviously restricts you from having use of the property yourself which is a major factor in considering this option.

Maybe even money left over for a boat

So how does it work for me?

Over all, having your Florida property transformed into an income generating operation relives any additional financial burden for carrying the second property and also works towards having another investment clear of debts. A successful strategy, because who needs more debt?