First thing I did when I retired was PAY OFF MY MORTGAGE. Believe me it gives you a heightened sense of security not to mention vastly lowering your monthly expenses.
As to Florida home values, my experience based upon nearly a lifetime of living here is this: When the bubble bursts the CONDOS, especially those not on the beach, will sink like a rock, but Single Family Dwellings wont drop that much, they just wont increase anymore for some time. Home I am in now, JUMPED in value shortly after I had it built in 1980 then I went through about 10 years with very little appreciation, now last few years it has LEAPED up in value, at least doubling. BUT, if you were to take the entire 25 years since I have owned it and averaged the price appreciation, it doesnt come out so much.
Lucky for me, in 1983 I bought 2 1/2 acres in Naples, Fla. Now turning out to be among the best investments I have ever made. That land is now worth nearly as much as my total land and home here in Boca and both are paid in full. So, if and when I decide to move to my final home one ought to be sufficient to pay for that and the other goes into my nest egg. jdn |
