John Beckett's Real Estate Blog

Most people retire in the same town where they spent their final working years, but some seek out a new locale with ski slopes or perhaps ocean views. Of course, budget is a big concern. Many people move close by and move to a smaller home or condo where they have less upkeep. They still want to stay close to their children and stay involved in the business world by consulting and remaining close to their clients. Here are some tips for finding a place that fits your budget and interests.

Cost of living. Moving to a place with lower housing, food and entertainment costs is an obvious way to stretch your nest egg. A lower cost of living is the major factor behind retirement mobility. I don’t know anyone moving from Kansas to Hawaii. Twenty-two percent of Americans age 51 or older who moved between 1992 and 2004 did so to save money, according to a recent analysis by the Center for Retirement Research at Boston College.

Low-tax locales. Tax rates vary considerably by location. Seven states don’t levy an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. New Hampshire and Tennessee tax only dividend and interest income. And five states have no sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Be sure to evaluate property taxes and state and local tax exemptions for seniors.

Health care facilities. Your health care needs are bound to increase as you age. Make sure your prospective retirement spot has adequate health care and elder-care facilities and a doctor who can treat any condition you may have. You can call and see how difficult it is to get an appointment, if you’re on hold for more than 10 minutes or you leave a message on voice mail and you don’t get a call back, then you know.

Proximity to family. Many retirees would like to become more involved in their grandchildren’s lives. Living near family sometimes has another bonus: help with lawn care or transportation for grocery shopping — services for which you would otherwise have to hire someone. Twenty-eight percent of older Americans who have relocated after age 51 did so primarily to be near children or relatives, Boston College found. People often migrate toward someone because they have become more disabled or have lost their spouse and they need some support that they are not getting in their current location. They will move toward their children or some friends to help them with their daily life.

Recreation and culture. When you’re no longer tied to a job, you have the freedom to live in wine country or within walking distance of a beach. Perhaps your ideal retirement spot has plenty of art galleries, golf courses and hiking trails. College towns often fit the bill and host world-class speakers and entertainers, and they often have an affordable cost of living.

Public transportation. Retirees often reach a point when they can’t or no longer want to drive. Consider the cost and quality of a town’s public transportation system and how to get around without a car. AppalCart, a regional bus service in Boone, N.C., for example, provides free local transportation. Retirees who join the Senior Club in Walnut Creek, Calif., ($7 annual dues) are eligible for a minibus service that offers transportation within the city limits for $1 each way.

Weather. To some, it’s important to not have to shovel snow or defrost a car. But warm climates also come with the downside of larger air-conditioning bills. Think about whether you want four distinct seasons. Some retirees can get the best of both worlds by maintaining or renting a residence in the north and then heading south for the winter.

Read the entire story at: http://realestate.msn.com/article.aspx?cp-documentid=23626185