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Economy has made traditional retirement destinations more affordable to seniors 2010-05-26 Some retirees may dream of packing up their retirement income and moving somewhere warm and sunny. Years ago, this may not have been financially feasible, but the current economy is making traditional retirement destinations more affordable to older Americans. Popular locations hit hardest by the financial crisis, like Florida and California, are now offering less expensive housing options to homebuyers, according to U.S. News and World Report. Experts use a price-to-income ratio to determine home values. For example, a ratio of 2.5 indicates that the home value accounts for 2.5 times the average household income, the magazine reports. Homes in the coveted Napa Valley area, which once displayed a 3.9 ratio in 2005, dropped to a 1.7 ratio in the fourth quarter of 2009. Homes in the laid-back sailing and fishing town of Punta Gorda, Florida dropped to a 1.4 ratio at the end of last year, the magazine reports. Retirees interested in relocating should take advantage of the current low inflation and interest rates that are making homes more affordable. Older adults may want to consult a financial planner to examine the type of credit score and asset information that will be needed to purchase a home in another area.  |
