According to data analyzed by Northwestern Mutual, one in five Americans have no retirement savings whatsoever, and a third of Baby Boomers, those who are closest to retirement age, have just $25,000 or less. Whether or not your part of those dismal statistics, buying land can be a good idea as part of a retirement plan to help prevent a potential crisis when you can no longer work, and probably won’t want to. You might even be able to find your perfect slice of paradise to build your own special retirement retreat.
Beyond that, you probably have a lot of questions about buying land to plan for retirement – here’s what you need to know before purchasing that land for sale in Michigan or anywhere else.
The Best Time to Buy
It should be obvious, but the sooner you can purchase land for retirement, the better as you’ll be building more equity. If you buy years before you plan to retire, you may be able to develop it through careful planning and research, which will potentially make it worth a lot more than what you bought it for. Or, take time to create the ideal place for you to live in the future. Once you’ve taken a close look at your finances and the real estate market in the area that you’re considering, take the first steps to make it happen as soon as you can.
One of the most important factors when buying land is where to buy. If you plan on investing to sell later, it’s essential to purchase in an area that’s desirable to a wide range of people, or you could end up stuck with the property. Do plenty of research to determine the areas that are most likely to go up in price. If you’re buying land that you plan to live on, you’ll need to think about what type of area you want to live in. Consider the cost of living, crime rates, healthcare and how easy it will be for family and friends to visit. Will you be near the things you love to do the most?
Of course, when thinking about location, you’ll also want to consider the tax consequences as both local and state taxes can vary significantly depending on the location. When it comes to taxes, the five most tax-friendly states according to an analysis by Kiplinger are Alaska, Wyoming, South Dakota, Mississippi and Florida. Of course, it’s important to consider all your needs and the overall quality of life you can expect too.
Know Who You’re Buying From and Why They’re Selling the Land
Whenever you’re buying land, you should always find out more about who you’re buying from and the reason they’re selling. Be wary of those who’ve owned the land for only a short time and seem eager to sell. Of course, there may be situations like an inheritance the owner simply has no use for. But in general, land takes time to accumulate value, so if it hasn’t been owned for long, it may be that the owners know something about it that makes it less valuable. If you’re concerned, before signing the dotted line, make sure that there is an experienced expert involved who can look into it further.