As I write this, it is 15 degrees in Boston, similarly frigid throughout most of the northeast and midwest. If you’ve ever contemplated retiring to a warm and sunny climate, now is an opportune time to sell your home and move south.

First, interest rates are historically low making home buying more affordable than ever. The Federal Reserve has cut rates in an effort to stimulate the economy. Low interest rates mean qualified buyers can obtain larger mortgages making expensive homes more affordable. Despite the current real estate market, homes priced and marketed right are selling.

Second, selling now allows you to take advantage of the favorable tax treatment on the equity in your house. For example, most couples qualify for the $500,000 exclusion from capital gain on the sale of their principal residence. This tax break may be taken away in the next few years, as the government struggles to fund huge unfunded obligations including health care and retirement pensions, massive deficit spending, a weak economy and lower tax collections. Why not extract your home equity now while this tax benefit still exists?

Third, the cost of living is lower in the south. For many years, retirees have fled to the Sun Belt to improve their quality of life, lower their cost of living and reduce their taxes burden. In high tax areas, state and local income taxes combined with property taxes can amount to nearly 20 percent of household income. Moreover, we believe this burden may increase as government struggles to offset lower tax collections by increasing local property and income taxes. Unfortunately, not only will taxes increase but your property values will erode. This is due to the fact that as a larger share of borrowers income is required to pay tax increases, there is less to repay mortgage loans.

Last, you’ve heard and know it’s a buyer’s market. Many lots and new homes are available at extremely low prices in great places to live. In addition, building cost are lower and you can build an extremely beautiful home at a very reasonable cost.

Now is the time to get the dream home and more relaxing life style you’ve earned. Take advantage of the current circumstances-low interest rates, favorable tax treatment, affordable, great places to live with lower taxes and costs of living. It is a buyers market but you won’t benefit unless you act.

Michael Hackeling, CEO
RPI Media, Inc.
Publisher of Ideal Living magazine