Beach Retirement a Reality for 40 Year Olds

One of the frustrating aspects of being a real estate agent is seeing all these great properties and wishing I could buy them. I have bought a couple...but of course, I can't buy up all the great deals. My current obsession is a terrific loft on Longboat Key - gulf views, beach front for an unbelievable price.

A story came out yesterday about how the investor market has dried up, yet the vacation home market is going strong. The reason for it, in my mind, is simple. People my age, years away from retirement, recognize this market for what it is, and realize we may never see beachfront property at this price again. If I retire in 20 years, and my loft has tripled in price, could I afford it?

There are many negative aspects to this market. But the overriding positive has been, and remains, that for someone with a dream of beach living, the market has not been more auspicious in years.

Naysayer Math Just Doesn't Add Up

I read an article this morning that said in one breath that 1) prospective first time home buyers should continue to rent and 2) put their money into stocks, not real estate.

While I respect the opinion, the math just does not work, except perhaps in the wealthier enclaves of the country. Most first time home buyers I deal with are working with a strict budget - they have a small amount to put down, and plan on spending , say $1250 per month for their mortgage and taxes.

If they continue to rent, that same monthly budget goes to their landlord. It is not "extra" money. They cant rent for $1250 a month and put money into stocks.

If the monthly budget is either going to rent, or into the equity of a home, the choice is clear.