Purchasing investment property is a reliable way to build wealth, while diversifying a stock-heavy portfolio with tangible assets. But, real estate investing also has a number of distinct and powerful advantages for individuals looking for a safe way to retire as well.
First off, investing in real estate can provide steady cash flow, which appeals to retiring individuals looking for a reliable source of income. Second, investing in real estate is a good way to generate income in the short term, while securing a profitable inheritance for family members down the road.
Of course, all of these benefits depend on investing in the right markets.
So, where should real estate investors look to put their money with a view toward a comfortable retirement? And, where are the best places for real estate investors to retire? Here are 10 great locations you should consider
# 10 Orange City, Florida
Orange City is a quintessential Florida town in many ways, making it great for real estate investors.
Median home prices in Orange City sit at $99,900, much more affordable than the national average of $188,900. Strong growth of over 12% in home prices last year make buying a home to invest and retire in Orange City a very attractive proposition. And with cost of living rates just over the national average, most seniors will be able to afford to live in Orange City.
#9 Seal Beach, California
Located on the northern edge of Orange County, this picturesque town is home to a massive gated retirement community with 9,000 residents, contributing to the fact that close to 40% of the population is at or above retirement age.
In addition to a strong retirement community, Seal Beach has great weather for retirees, with an average temperature of 65 degrees. Median home prices of $850,000 will price many retirees out of this market, but investors who can afford to retire here will see good returns on their property purchases, as home prices have risen 6.4% over the past year and are projected to continue rising.
#8 Green Valley, Arizona
This retirement community has close to 75% of its residents at retirement age, and there’s a host of reasons why so many have flocked to Green Valley to spend their golden years.
With an average temperature of 64 degrees, retired individuals feel comfortable in Green Valley. And with a cost of living indexed rate of only 108 compared to a 100 base line, Green Valley is an affordable retirement destination. Median home prices in Green Valley sit at $150,200, a 1.3% decrease since last year. However, prices are projected to spike sharply by the end of 2016, so a home purchase in Green Valley is probably a savvy investment decision.
#7 Florence, Oregon
With a cost of living indexed rate of 99 compared to a baseline of 100, living in Florence, Oregon is cheaper than the national average, a big plus for retired individuals living on a fixed income.
Close to 40% of residents are of retirement age, and there is a strong tradition in the retired community in Florence of remaining active through volunteer work, community projects, travel clubs, and other enriching and rewarding activities. Plus, from a real estate investment perspective, Florence is a smart choice: median home prices have seen consistent growth with projected growth of around 2.4% next year. The only drawback with Florence from a retiree’s perspective is a somewhat low average temperature of 52 degrees, but residents are very happy to live in Florence during colder months because of the vibrancy of this community.
#6 Venice, Florida
This beachfront community offers ample opportunities for senior recreation, with 14 miles of coastline and an average temperature of 73 degrees.
Retired individuals don’t feel lonely, as Venice’s vibrant retirement community results in over 50% of the town’s population being of retirement age. Cost of living is about 16% higher than the national average, but Venice still provides great real estate investment potential for retired individuals. Median home prices lie at $204,600, up 7.7% from last year. Investors digging into the numbers will find that 9.7% of homes currently have negative equity, but that number is far below the national average of 15.4%, and can be explained by particularly inflated home prices during the most recent housing bubble.
#5 Punta Gorda, Florida
Punta Gorda in South Central Florida is a great place for people to retire who are searching for a balance of affordable living and good weather.
An average temperature of 74 degrees makes this waterside community feel like paradise most of the year, especially for individuals of retirement age, who make up 44.5% of the population. Cost of living sits at 20% above the national average, but median home prices sit at $192,700, much closer to the national median. Home prices rose 5.4% last year and are projected to keep growing.
#4 Rancho Mirage, California
While there are many retirement destinations in California that can match Florida’s natural beauty and beautiful weather, few can compete on a price scale, and Rancho Mirage is no exception.
The median home price in this town at the base of the Santa Rosa Mountains is $460,200, down 2.9% from last year, but a rebound is expected and home values should go up in the future. Those projected value increases are mostly due to a great quality of life: 74 degrees in the average temperature, and seniors will find a strong community with 46% of the population of retirement age.
#3 Douglassville, Pennsylvania
Cool temperatures mean that many people don’t consider Pennsylvania to be a prime retirement destination, and the average of 51 degrees in Douglassville certainly makes it the most brisk entry on this list. But there are plenty of good reasons to weather the cold in Douglassville, from the abundant nearby historical attractions to the thriving retirement community. The indexed cost of living in Douglassville is 107 compared to a 100 baseline, making it just barely more expensive than the national average, though home prices are somewhat higher in relation to the national median.
#2 Hot Spring Village, Arkansas
Nine 18-hole golf courses, eleven recreational lakes, and dozens of miles of pristine wooded hiking trails fulfill Hot Springs Village retirees’ desire for the outdoors with plenty of recreational opportunities. This is just one of the reasons why this retirement destination ranks so high on our list.
The average temperature is a comfortable 62 degrees, though there is admittedly more seasonal variation than in entries from Florida or California. But that hasn’t scared away retirees, as retirement aged individuals make up around 58% of the town’s population. Cost of living isn’t too high, at only 5% above average, and the median sales price of a home is actually below average, at just $175,900. However, home prices have grown 4.5% since last year, and home values are projected to continue growing at a similar rate next year, making Hot Springs Village a smart choice for investors looking for steady increases.
#1 Dunnellon, Florida
While this North Central Florida town is often referred to as the “Treasure of the Nature Coast”, retirees won’t have to sell the family jewels to move here.
The cost of living is surprisingly affordable at only 2% above the national average, and the median home price is well below the national average at $110,700. However, smart investors should take notice of the fact that home prices grew an astounding 9.4% last year, which corresponds to similar high growth in recent years.
While there are many great places to retire in Florida, as you can see from the state’s dominance above, this is certainly among the best, with it’s tremendous value and great offerings of natural beauty. An average temperature of 70 degrees makes the weather in Dunnellon ideal for retired individuals, and if you are looking for a place to call home as a retired real estate investor, you’d be hard pressed to find a better town than Dunnellon, Florida.
Greater Tampa Bay Market
There are many wonderful places like Dunnellon, Florida for real estate investors to retire, while still having easy access to the very profitable real estate investment markets Florida has to offer.
So when you are ready to retire as a real estate investor, we encourage you to investigate the Greater Tampa Bay market, where you can have the best of both worlds – a great place to retire, and either live in Tampa Bay or be close by, giving you access to one of the world’s best real estate investment markets.