Just Around The Corner Are The Baby Boomers
That’s right, in three years the baby boomers will be hitting retirement in their thousands. So what does this mean for property investment?
Essentially there are there are two scenarios here.
Firstly, there are the baby boomers who have been growing property portfolios and if they are heavily geared they most probably will be looking to quit a couple of properties so that they can live off a positive cash flow income from what they retain in their portfolio.
Secondly, baby boomers who have not managed grow any type of investment to fund their retirement will be searching for rental properties in areas that will allow them to live a lifestyle within their income means. For example, those who have lived on the coast or in larger cities where rents are higher, during their working life will probably find that they have to move out of the city or further away from the coast so that they can afford the rental.
Baby boomers who fall into the second category are excellent potential for tenants as they want long term rent, on the whole look after the property, have a set income and most definitely do not want to be moving so will do all in their power to stay where they are. If the conditions are right, there is the possibility that baby boomers will stay in the one property for 10-15 years.
It makes sense, therefore that if you are going to buy properties to attract this type of tenant you keep the rent as low as you can, have the garden as low maintenance as possible and perhaps even throw in the lawn mowing.
If you plan to go down this path, sit down and work out what it has cost you in tenant placement fees, property management fees, advertising, repairs and so forth, and establish a good rental from there.
Another benefit of this type of tenant is the fact that more than likely you can manage the property yourself because you will not have to put in new tenants on a regular basis.
The ideal property
In searching for properties to attract this style of tenant consider looking for duplex units where you can perhaps own the two, any low set unit in small clusters or even a house that can be divided into two units. These are ideal in that they are compact and easy to look after.
Filed Under: Investment Strategies • Property Investment Tips
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