Understandably, making real estate decisions can be complicated no matter how many times a person has completed these types of transactions in the past. However, it can especially be overwhelming for those nearing retirement. A few tips may help retirees to make smart residential real estate decisions in California.
First, it is generally wise not to treat home equity as an asset during the retirement planning process. Traditionally, a home was considered a solid savings vehicle. This is no longer the case. It is best not to assume that a significant amount of home equity will be available to tap.
Second,don't simply assume that a profit will be made by purchasing investment properties and keeping rentals for the purpose of retirement investing. The success of these types of properties really depends on what is taking place in the local market. The real estate market today is difficult to predict, and a great deal of patience may be necessary to experience profitable residential real estate sales. Still, in some markets, prices have risen about 20 percent after being decimated in the Great Recession of 2008, so it is possible to succeed in these markets.
The residential real estate market is dynamic in the Golden State. Trying to buy or sell a residential real estate property at any age, but especially near retirement age, may seem overwhelming, as a single mistake may be costly for a person. Fortunately, appropriate legal guidance may help people to confidently navigate real estate transactions and accomplish their particular objectives in the California market.
Source: morningstar.com, "4 Common Real Estate Mistakes Retirees Make", John F. Wasik, Aug. 28, 2016