Real Estate Investment Ideas for Baby Boomers
Roughly 25% of the U.S. population consists of baby boomers, a number that's expected to rise substantially in the coming years. In these uncertain economic conditions, shaky investments can see baby boomers lose a large portion of their wealth and savings. Baby boomers must plan accordingly to preserve their purchasing power and continue to earn income for a prudent post-retirement nest egg.
This reality has many seniors reconsidering their investment strategy, especially when it comes to the real estate market. Real estate investments can bring financial strength to retirement portfolios, as well as financial security for their children in the years to come.
Market Growing to Serve 50+ Demands
Whether selling empty palatial houses and purchasing substantially smaller homes with more amenities, or moving to communities for retirees in urban cities, baby boomers are looking for style, comfort, convenience, security and accessibility in their homes. To serve the demands of this growing demographic, many homes will be built to adhere to the needs and requirements of baby boomers, especially in the retirement communities. This emerging trend will spur incredible growth in the real estate market in the years to come.
Baby boomers can benefit from real estate investments because they can subsequently rent the property and earn a substantial and fixed income for their post-retirement lives. Real estate investment also gives them a chance to secure mortgage to meet other expenses, such as home refurnishing, old age Medicare etc.
Real investment also gives increased financial security during the economic boom because they can sell their home at a greater price than what they had bought it for. This will give them instant and greater amount of income.
Helping Their Children Achieve Financial Independence
Real estate investment is also a wise way for baby boomers to invest for the education, medical and other expense of their children in the latter years, whereas they can conveniently enjoy their income from retirement accounts.
Many baby boomers are also interested in real estate investment to save the university accommodation for their children which is very expensive. Also they can use the second home to start a new home-based business to generate more income.