Compared to other states, Delaware is the place to be for those who mind their numbers—and for those who want a high quality of life. To start, housing prices here compare favorably with those of neighboring states. The median price of a home in Delaware in mid-January was $191,100. Compare that to New Jersey at $270,800, Virginia at $227,000, Washington, D.C., at $363,200, Maryland at $234,400 and Pennsylvania at $143,400. The median price of a home in Delaware many cases now approximates prices in 2004.
Other compelling arguments are low property and school taxes, and a lower cost of living. As a point of reference, the median property tax rate in Delaware is 0.43 percent, as reported by Avalara.com. In New Jersey it’s 1.89 percent. Pennsylvania is 1.35, Maryland is 0.87, Virginia is 0.74 and New York is 1.23 percent.
Another consideration for buying here is location. Those who work outside the state and retirees with family and friends in neighboring states enjoy manageable commuting. And Delaware is close to Baltimore, Philadelphia, Washington, D.C., New York City and Atlantic City.
Many of the advantages of buying in Delaware translate to immediate and long-term savings. Other reasons translate easily to long-term quality-of-life benefits. People enjoy living here because of natural attractions like the beaches and state parks—16 in all—as well as outdoor pursuits such as hunting, fishing and boating. There are two national wildlife refuges, three state forest complexes, numerous golf courses, performing arts, excellent museums, a NASCAR raceway and historic sites that are among the earliest settlements in the Unites States. There is horse racing and casinos. For the military retiree, Dover Air Force Base is located in the middle of the state. Several universities and colleges add to the allure. Homes for nearly anyone’s taste abound here. There are rural homes, second homes, city houses, beach homes, condos, and in ever-increasing numbers, 55-plus or active adult communities.
Delaware is gaining popularity as a posh retirement destination. CNBC recently named Rehoboth Beach one of the top places for baby boomers to retire, citing its proximity to major cities, its attractions and its increasing population of Americans over 65 years old as some of its defining benefits.
The advantages of buying tax-free real estate in Delaware
A big incentive to buy a home in Delaware is the state’s favorable tax policies. For example, income taxes in the state are low, ranging from a base of 2.2 percent to a high of 6.7 percent, according to 2012 data from the Federation of Tax Administrators. By comparison, nearby areas such as New York and Washington, D.C. have income taxes that can be as high as 8.95 percent.
In addition, for retirees there are more than just Delaware real estate taxes to find favor with. For example, in Delaware, most residents are not required to pay personal property taxes, sales taxes on retail items, inheritance taxes, local taxes or Social Security benefit taxes.
Buying Delaware real estate for prime beach property
Relocating to the Delaware Beach area provides homeowners with more than the means to acquire additional income through vacation rentals, tax advantages and a relaxed paced lifestyle; it also allows them to experience a wealth of attractions. For example, Rehoboth Beach is known as the “Restaurant Capital of Delaware” and offers a wide range of restaurants featuring everything from elegant, fine dining to family friendly eateries.
Lonely Planet, a top destination for travel information and reviews, rates a number of Rehoboth Beach and Dewey Beach attractions highly for their atmosphere and creativity.
