If you are approaching retirement age, certainly consider moving to Cape Coral; however, you should also formulate a realistic financial plan that addresses your real estate goals. The most important aspect of this financial plan is that it includes the advice you need to avoid making the following mistakes:
Banking Entirely on Home Equity
Back in the heady days of the real estate bubble, home buyers in Cape Coral took on mortgages they could not afford because they saw their properties not only as their nest egg but also as the proverbial basket where they can put all their eggs in. Fast forward to 2016 and you will see that a good number of Cape Coral homeowners are not able to sell because they are enrolled in federal mortgage repayment programs that keep them underwater. Your retirement home can be an asset, but it should never be your only source of savings.
Betting on the Housing Market
Financial growth is still possible with Cape Coral real estate, but you should not bet your retirement on it. The last thing you want to do is to get caught up in home flipping schemes, which are still making the rounds across Southwest Florida. Your home should be your castle and not your personal ATM. If you are bitten by the investment bug while enjoying your golden years in Cape Coral, remember the following three tenets of real estate: homes depreciate, need maintenance, and can easily go out of style.
Misunderstanding Your Mortgage Options
Let’s say you have enough cash to purchase a Cape Coral home outright so that you can get a free and clear title at the closing table. Should you do this or should you apply for a mortgage? You should always think about your long-term goals and discuss them with your mortgage broker and your financial planner. Even though Cape Coral is a very affordable community for retirees, you should never be “house-rich and cash-poor” anywhere in the U.S. A mortgage is still the most sensible path to home ownership; however, you may wish to invest some of your savings as part of a substantial down payment now and think about a reverse mortgage refinance later down the line. Contact Cape Coral Mortgage for the best advice from local experts with years of experience in this market.
Foregoing Travel Expenses
Relocating to Cape Coral for retirement can be very exciting, but you should not completely write off the prospect of travelling in the future. Along with your plans to acquire real estate, you should think about allocating some funds for future travels. Whether it is to see the children, welcome grandchildren, catch up with old friends, or cruise the Caribbean, you should be financially prepared for the moment you get the urge to travel.
Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S.
Cape Coral, Fl. 33931
(239) 540 5555