Florida has been a retirement destination for decades given its warm climate and incredible leisure activities, and now with the low mortgage rates and buyer incentives, many people are capitalizing on these conditions and looking to purchase these second homes.

 

In the past two months the 30 year fixed rate mortgage has dropped below 4% and the 15 year fixed rate mortgage is below 3.5%, making housing incredibly affordable, especially when purchasing a second home.  Currently, the “baby boomer” population is at an estimated 40.7 million between the ages of 50 and 59, according to the U.S. Census Bureau, and this demographic is expected to enter the vacation and rental property markets, alternatively for those in the upper income brackets, luxury second homes. The current primary buying market is between the ages of 40-49, which has 43.8 million, followed by 30-39, which will be the next generation of second home buyers.

 

Second home buyers often take advantage of distressed properties, since they have few constraints on resources and other restraints that a first home buyer would have. Further, second home buyers often purchase in cash. Other buyers in the baby boomer demographic will take advantage of the rental market conditions to acquire rental properties. By purchasing a property now and renting until you are ready to retire in it, you produce steady income and improvements made are tax deductible.  All in all, this is wonderful news for those looking to sell their Vero Beach Homes,  since it is an established community with incredible leisure activities and amenities for retirees.