Retire on real estate?

We are witnessing the "plunge" of the stock market. We have already witnessed the "plunge" of the real estate market. Where do we go from here?

The real estate market is reported to have "bottomed out" or is close, anyway. No one has a crystal ball that can assure us that this is true. Past cycles and current statistics all indicate that the real estate market is forecast to rise in the future. Current and consistent increased activity in sales indicate that this is true.

Real estate, for investment purposes, is a long term commitment. Now that we have weathered the worst stage of the real estate market, it would be logical to assume that real estate would now be a wise investment.

The stock market looks riskier these days.

For those of us close to retirement, we cannot accept this risk. Can we cautiously withdraw this retirement money and, with the expert advice of a financial counselor, invest our IRA in real estate? With the real estate market at a low and predicted to begin to increase over the next three to five years, this might be the time to purchase retirement property without selling our current home.

We buy the retirement property in a low market and wait to sell our current residence over the next three to five years and predictably, obtain an increase in the current residence. We will have capitalized on the current low market and we win on both ends.

The best bargains in real estate are still available in the condominium market. Current statistics and past stagnation in the vacant land sales indicate that this area, too, offers some good values. Cash buyers, using their retirement portfolios, have a tremendous edge in negotiations in this real estate market.

Cash offers are typically lower than offers with a mortgage contingency but these offers have an extremely high possibility of closing, whereas the offer with a mortgage contingency still has to have bank approval with excellent credit from the borrower along with validation of income and a current appraisal at or above contract price.

The key to buying in today's market is still "location, location, location"! As the snow begins to fall in the Northern states, oceanfront and riverfront condominiums here in Florida consistently attract buyers. This is a terrific time to switch your investments to real estate.

Be cautious, be careful and work with a professional.