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How To Target Downsizers with Investment Property

baby boomerWith the Australian ‘aged’ population set to reach unprecedented mark and many of them aspiring to downsize, real estate investors will do well to pick the ‘baby boomer’ cue and emphasise on investments which are preferred by the aged downsizers.

Baby boomers present an “army of retirees”

From 3% in the early 2000s to about 9% recorded 2 years ago, the retiree population is certainly on an upswing. The numbers have grown further by 2013, if anything. As the Aussie population ages and their leaning towards downsizing become greater, the government will have to be at its toes to meet the kind of requirement they have. Why is the aged choosing to downsize?

Baby boomers can sell their big homes….downsize…and live merrily on the spare cash

With children saving enough to procure first homes, they are left with only themselves and the really big homes are nothing but a maintenance headache. A downsizing arrangement suits them better. After all, years of property appreciation has ensured that the property they could manage to buy in their heydays is sellable today at a really smart amount. What this implies is that they can sell off the property, downsize peacefully, and still have enough in the kitty to take a long trip and keep the retirement nest egg full.

Retirees downsizing to live close to the action areas

They are also downsizing because they wish to be close to the real action areas.  Places close to the shopping hubs, sporting venues and so on. Now, for the question, where would they prefer to live?

And what areas are they choosing?

The baby boomers are either buying property as investments (with an aim to live in them after retirement and keep the mortgage payment ticking through rental returns till then) or with a desire to move into them straight away. Either way, they are choosing inner suburbs mostly (and a penchant for fringe of the city centre also noticeable) because it offers them the flexibility of low rises, townhouses, and open plan living.

If you are making your investment in the inner suburbs, you will need to target downsizers-  and remember at all times that the army of Baby Boomers is chugging along. A seasoned buyer’s agent may be just what you need to get hands on the best property on the market, and at a handsomely negotiated price. Feel free to contact me to talk further about the purchase you have in mind.