Bargains Abound for Retirees

Now could be the perfect time to buy a home for your post-employment years. After all, home prices are down as average of 10 to 20 percent from the peak in most areas of the country and as much as 40 percent in some of the most appealing retirement areas.

Here are some factors that a potential buyer of a retirement property might consider:

> Moving to an area that has been hard hit by the housing downturn, like Miami or Las Vegas, can mean great prices for buyers. > Trading a big home for a smaller property will reduce the cost of maintenance, insurance, and taxes. > Buying a property now and renting it out can be profitable in the right areas as more people today prefer renting to owning.

In addition, below are retirement meccas where prices have dropped significantly, according to data from Moody's Economy.com and the National Association of REALTORS® :

1. Las Vegas: -51 percent

2. San Diego: -47 percent

3. Phoenix: -52 percent

4. Tampa, Fla: -38 percent

5. Naples, Fla: -27 percent

6. Myrtle Beach, S.C.: -16 percent

Source: Money Magazine, Michaela Cavallaro (07/29/2009)

Entrepreneur Identifies 10 Do-Buisness Cities

Entrepreneur Magazine has identified 10 major cities that it says encourage business start-ups.

The magazine chose the cities that provide government incentives, have affordable commercial rents, have public officials who are open to new ideas, and have a population that's growing.

Amy Cosper, editor in chief of the publication, says she thinks Entrepreneur's research will help other businesses that are searching for a location to start a new business or expand an existing one.

The most entrepreneurial cities identified in the July issue are:

1. Las Vegas

2. Portland, Ore.

3. Orlando

4. San Diego, Calif.

5. Phoenix

6. Capital Hill, N.C.

7. Atlanta

8. Madison, Wisc.

9. Youngstown, Ohio

10. Austin, Texas

Source: Entrepreneur (07/29/2009)

WHY TO PURCHASE NOW

He advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they're only buying as much home as they can afford.

The longer you rent, the longer it may take you to eventually get into homeownership. If the market conditions have scared you, perhaps you're not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you'll get an excellent deal.

While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors' housing affordability index concluded that homes in December 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping, now is a good time to buy.

How much you can you afford? Don't let tighter lending regulations scare you off from making a purchase. Instead, understand what you truly can afford. Don't get caught up in buying too much home. In fact, these days, the trend is moving toward SMALLER HOMES--SIMPLER LIVING.

Mortgage rates drop to historical low. How much home you can afford is affected by mortgage interest rates that, right now, are highly appealing. Good credit, documenting your income, and a substantial down payment will make you a better candidate for better mortgage rates.

You have freedom to choose. Now, unlike several years ago, the market has a large inventory. The market time to sell a home has increased which creates a large inventory of homes, everything including new, existing, and foreclosures. Buyers can peruse the market and have the freedom to select the home they really want. If you're interest is in a new home, know that developers are getting more competitive with their pricing because they also have taken a hit by the ailing ecomony.

Think of your quality of life. Buying a home can create a higher quality of life, giving you pride of homeownership, and something to enjoy improving and developing over the years.

Don't forget the First Time Buyers $8000 tax credit (NOT DEDUCTION). A tax credit lowers your tax bill dollar for dollar. A deduction shaves money off your taxable income, so the value depends on your tax bracket. The tax credit is 10% of the home's sale price with a maximum of $8000. There is no pay back like the credit that existed last year. People who buy homes between January 1 and December 1 of 2009 may qualify for the $8000 no-repayment credit.

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