Forget the Year of the Rat, 2020 is the Year of the Boomer!
Empty-nesters, retirees, wealthy older buyers – call them what you will. But they are a force to be reckoned with as they take the current property market by storm.
With enticing ingredients like soft lending conditions and fresh-cut interest rates, home buyers have the perfect recipe for securing the property of their dreams. That is, except for the final splash of steep price increases which turns it all a bit sour. And it’s left a foul taste in the mouths of those hungry to enter the housing market. It seems that it’s not only the interest rates experiencing a sense of depletion, with house hunters now losing all hope.
Unwittingly stretching the generation gap further, the “oldies” are cashing in on a lifetime of prosperity as they sell up their family homes in favour of something smaller and more manageable.
According to Real Estate Buyers Agents Association president Cate Bakos,
“The sorts of challenges that most buyers face, including valuations and gaining finance approval, are obviously not a concern for a buyer who is not impacted by a shortfall.”
Older, wealthier Aussies can simply afford the residential property of their choosing without all the red tape, giving them the upper hand in a seller’s market.
In Melbourne, Glen Waverley is the top hot spot for downsizers, with Brighton East, Parkdale, Point Cook and Berwick coming in not far behind.
So, can the younger generations even get a look in?
It’s possible with the right strategy. And a viable option would be to use their savings in the short term to invest in a high-yielding asset. Rather than relying on scanty interest rates with the bank, they could see their investment returns double in five years – allowing them to purchase more expensive real estate down the track. GSA prides itself on this strategy.
If you’re discouraged by the Baby Boomer Boom, come and have a chat with us and we’ll soon put a smile back on your face.