There are ways that owners of Denver CO real estate can keep the cash flowing for retirement needs and keep their houses.  One plausible solution is for people to take out new mortgages for existing or downsized real estate in Denver while they are still employed—before retirement.

The size of the fixed retirement income can be increased with careful mortgage planning.  Then, the financial security can allow people to responsibly take care of home repairs, health issues, and the like.  Many people only have a paid-off home at the time of retirement and cannot wrap their arms around medical needs, long-term care, emergencies, and the unexpected. 

Some take out reverse mortgages to try to solve the shortfall.  However, reverse mortgages are limited and very costly and should only be used as a last resort.  Some people obtain home-equity loans, but during retirement that is more difficult because loan applicants must be employed. 

One smart strategy is to take out a conventional mortgage while there is still a stream of income.  For example, a person eyeing retirement gets a mortgage for $100,000 that comes with a payment of $700 per month.  After making the first payment, $99,300 remains.  That money can be saved and/or invested for an 8 percent return.  Within 15 years, the money will be worth nearly a third of a million dollars.

But let’s say that the mortgage was at 6 percent and so are the returns on your investments.  Does it all even out?  No.  Tax laws tip the scale.  Mortgage interest is deductible at your top tax bracket but investments are taxed as low as 15 percent. 

According to Ric Edelman in Strategic Homeowner Magazine, “If you’re in the 25% tax bracket, this means your mortgage costs 4.5% after taxes.  In other words, tax law helps make it beneficial for you to have a mortgage.”  This strategy only works for self-disciplined homeowners who will leave the money that is growing for necessities and not for extra trips to the Bahamas.

For more information about homes, farms, horse properties, and real estate in the Mile High City, call Michael Paul of Realty Oasis at (303) 268-6052.

Buyers will discover a variety of topography including flat, sloping, and wooded portions of the property offer several potential build sites suited for that dream home near Denver or a small Colorado ranch for retirement.  The Colorado horse property is close to Interstate 70 and only four miles from the high school.  It is reasonably priced at $400,000 in a popular area. 

The astoundingly beautiful mountain city of Evergreen is home to a diverse population of about 10,000.  It was once a quiet mountain retreat visited by the few.  Another 20,000 live in the surrounding rural areas and think of the city as their hometown.  People from all walks of live choose to live in this mountain area—everyone from artists to engineers.  They fill up the charming neighborhoods and are tucked into the hills and woods from Conifer and Genesee to Mount Evans on the west.

At the center of the small city, there’s a serene mountain lake that is open during the wintertime for ice skating, in summer for boating, and for fishing all year long.  Along with two golf courses, the area is filled with hiking and mountain biking trails.  Residents enjoy a swimming pool, gymnasium, racquetball and handball courts that are operated by the recreation district. 

Surrounding the community are many large parks for recreational activities, including riding horses and cross-country skiing, biking, and hiking.  Meyer Ranch, Lair o’the Bear, Alderfer/Three Sisters, and Mount Falcon Park are among them.  Then, about 90 minutes into the Rockies are several world-class ski resorts and extensive opportunities to relax in the beauty of Mother Nature.

Short of driving into the Mile High City, residents are able to easily access medical facilities, social and professional services, colleges and universities nearby.  The Denver International Airport services the greater metropolitan area and Rocky Mountain communities.  With the highly rated JeffCo Schools serving the students, this is a wonderful place to raise a family. 

For more information about farms, horse properties, and real estate in the area, call Michael Paul of Realty Oasis at (303) 268-6052.