Nation: Boomers Buy Now, Retire Later!

A buyer's market and favorable tax laws are motivating more baby boomers to buy now and retire later. Where are the hot spots? Near Water and Mountains. Minneapolis CPA Ronald Kelner's retirement is about 15 years away but he and his wife are renting out their future retirement home near Palm Springs. The Kelners are reaping the tax benefits and getting a step up on their peers that will flood the market in years to come. While most second-home purchases are for use now, the National Association of Realtors' survey shows that those born between 1946 and 1964 are more active buyers than any other group, owning 57 percent of all vacation homes and 58 percent of rental properties. the second-home market got a boost when tax laws changed in 1997, allowing owners to sell and get a $500,000 exemption from capital gains (for couples), as long as they lived in the property for two of the five years before the sale.