Baby boomers, are going to continue to influence the real estate industry for decades to come.
Approximately 35 percent of the nation's population are 50 or older,., There appears to be more than 33 million Americans 65 or older, representing nearly 13 percent of the population.
How many baby boomers are there? About 78million.
So what does this mean for the real estate industry. Boomers are still going to purchase that second home or retirement home not matter the forecast provided by the news media each and everyday.
"Baby Boomers" are EXPECTED to have a big impact in the southeast and the southwest
There is a very large % of our population moving towards retirement age over the next 15 years;
A large number of these people have no intent on staying in their current location or even state.
Even though many boomers are not well prepared for retirement, there are still a significant percentage of people with tremendous wealth;
All These people want to live in places with nice lifestyles.
With this knowledge baby boomers are expected to make preconstruction investments
So if you are looking to invest in preconstruction opportunities some of the first things you should do is
- Research and find places that the boomer generation want to live and purchase in that area
- Look for hot spot in the country such as Gatlinburg, or Pigeon Forge, TN(where you have better than 13 million visitors each year and the # 1 most visited State Park in the entire country-The Great Smoky Mountains.
This area is an idea location to purchase a preconstruction investment for second home or overnight rental
- So How do you do this with little risk? Find a good agent that specializes in preconstruction that has a great deal of knowledge about the market and market changes as well as good relationships with rental management companies that can provide previous rental history.
- So what do you do if the price drops. Wait patiently. For if you homework is correct and it is truly a place boomers and tourist alike are attracted to , it will bounce back and you will do just fine
- What kind of return can you expect on your investment - That will depend upon the rate of appreciation. And if there is a window of about 15 years that boomers will be investing you can be assured that there will be one that is going to want you property
- If you do not want to wait it out and want to sell in less than 5 years you would need your main focus to be preconstruction overnight rentals that can provide significant rental history that would entice an investor to purchase
- There are more risk in short term investing. However, if you purchase in thriving markets you should be able to exit quickly should the need arise
So in closing purchase preconstruction where you are confident that a lot of people will want it down the road, manage your risk, and hopefully make really strong investment returns
For more information about hot markets contact Angela Privett 865-803-6643 ajprivett@aol.com
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