Over recent weeks I’ve been sharing my thoughts with you on some of the major shifts heading for the Australian Property Market this year and I’ve been bowled over by the response.
Seeing as this is obviously a topic of great interest, I thought I’d share a quick note with you today about one shift that I believe will represent significant changes (and in some cases, significant opportunity, in particular areas) for property investors this year.
The “Grey Tsunami” is coming… that is, the inflated number of retirees as a result of the baby boomer generation reaching the traditional retirement age of 65 (the first of the Baby Boomers are 67 years old with a floodgate of people born between 1946 and 1964 to follow them over the next few years).
The number of people over 65yrs still in the workforce shot up by 117,000 (up 72%) since the GFC. Amongst these 32,000 are over 70 years of age.
“One in every 100 workers are now over 70 years and that number will grow enormously in coming years” said Tim Colebath – The Age’s Economic Editor
This will cause the numbers of older workers to balloon as the Baby Boomer generation reaches retirement age with many of them staying on due to losses incurred during the GFC.
The big issue is that many of those people were intending to retire between the ages of 55 and 65, so they are largely struggling with the idea of needing to stay in the workforce (dubbed “Generation GFC many Baby Boomers have seen their savings, share investments and superannuation balances plummet in recent years).
This demographic is going to be wanting and needing very different services and living/travel arrangements to other (younger) members of the workforce. It may also involve down-sizing but needing to stay close to traditional employment centres.
Despite the fact people are waiting until later to retire, we are set to see these older workers exit the workforce in greater numbers than we’ve ever seen before.
Most will need to sell their home and relocate to a more affordable location so they can top up their retirement funds.
Certain areas and types of accommodation will be favoured as ideal areas for retirees to purchase due to affordable housing, good airport links and roads (so grand kids can visit easily), medical/hospitals, and lifestyle elements.
Trends of this magnitude often come along just once in a lifetime and I have a wealth of research and investing strategies which I’ve been working on to help investors capitalise on this shift.
If you’d like to know more, this is one of the topics I cover in my online training course titled, "How a Country Boy from a Dairy Farm in NSW Became a Property Millionaire - By 'Pinpointing' Suburbs About to Skyrocket in Price".
We’ve already had several thousand people attend this training and it's going to be available again for the next few days, so be sure to register now to secure your place.
I’m looking forward to sharing the trends that will make the biggest difference for you this year, the areas to avoid and the hot spots where I see the most opportunity for investors in 2016.
And, as I always say “If you can’t buy it with your lunch money – don’t buy it!“
To your success,
The Lunch Money Property Millionaire
Phil Anderson’s ‘rags to riches’ story has been a motivator for countless Australians. His relentless efforts allowed him to retire as a self made multi-millionaire at just 38 years of age largely due to his passion for Real Estate. There really is no one better for educating Australians on how to create wealth through property, using nothing more than a ‘lunch money’ budget. "I’m just an average country boy who grew up without money. When I retired in my 30′s I became annoyed that our school system doesn’t teach us these simple facts that can help anyone retire young."