Baby Boomer Real Estate and Retirement

Baby Boomer Real Estate

The baby boomer real estate mess...it seems everything is working against baby boomer retirement.

It is the perfect storm...baby boomers want to retire...but how?

Once upon a time, real estate values went in only one direction...up.

Many baby boomers were counting on the equity in their home to fund a portion of their retirement.

In Arizona, where we live, an estimated 46% of homes are underwater

In neighboring Nevada...it is worse...80% of homes there are worth less than the mortgage.

Hopefully we will look back on 2012 as the year that the real estate market hit bottom and prices start to gradually rise again.

The walk away generation

Many boomers will walk away from homes that are worth less than the remaining mortgage. It is becoming more and more popular and causing less and less guilt...once unthinkable...now reality.

This phenomenom will not help home values recover anytime soon. What to do?

Options for baby boomers

Faced with the reality of no to low home equity, boomers still retiring will have these options:

• Downsizing
• Retiring overseas
• Alternative retirement, like RVing
• Working after retirement

I will not mention continuing to work...that should not be an option with the above available.

The good news

We have been retired for 16 wonderful years...we have experienced every one of the above options...we have had a ball doing so...and you can do it as well.

The current baby boomer real estate mess is giving you lemons...make lemonade.

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