The Retirement Phenomena

Incredibly low prices and record low interest rates have created a new phenomena in Venice Florida real estate.  Record numbers of our northern friends who are anywhere from one to three years from retirement have been coming to Venice Florida to secure their retirement home now.  The previous real estate bust has created buying opportunities that will likely not occur again in our lifetime.  In addition, interest rates at near record lows are making house payments so affordable that it is foolish to wait several years to purchase when prices and interest rates will almost certainly increase.

Some of the Pre-Retired are buying homes and renting them annually turning their future home into investments with positive cash flow.   Many are renting them seasonally so they can gain the maximum rental fees and then using them for vacation homes in the off season.  Some are leaving them vacant and have routine maintenance handled by lawn and pool companies, etc.

For example, this home at 301 Sunrise Ave., Nokomis Florida, just 5 minutes to our north and five minutes to the beach is priced at $224,900.  The monthly principal and interest on a 30 year fixed rate mortgage with 20% down at today’s current rate, according to Gulfside Mortgage is:

4.75%     $ 938./month

If interest rates go up one or two points over the next several years, the monthly payments go up to:

5.75%     $ 1,050./month

6.75%     $ 1,167./month

This is a whopping 24% increase in monthly payments which does not even include the fact that prices will be rising also.  Our Pre-Retired friends from the north seem to be unanimous in their opinion that now is the time to buy.

Venice Florida was featured in the Where to Retire magazine as one of the top places in the United States to retire.

For more information on Venice Florida homes for sale contact Gulf Shores Realty at 941-488-6644.  For more information on today’s current mortgage rates, contact Tony Moore with Gulfside Mortgage at 941-485-4222.