Boomers Become a Burning Market for Income Properties
Even though the current market has put many sellers from going ahead with their plans to sell their family home, these baby boomers have become a burning market for income properties. A recent national survey of real estate agents found that 88 percent of the 1450 brokers and agents surveyed have baby boomer customers who already possess or are seeking to buy an investment property. Some 23 percent of agents surveyed reported that at least 50 per cent of their baby boomer customers either now own or are seeking to buy income producing properties.
This generation of baby boomer has been driving the economy ion the U.S. for years, and similar to numerous Americans, they are anxious over their upcoming real estate resolutions. I know these current boomers are a varied group and are hard to describe in general terms, although surveys clearly shows that those baby boomers who are secure financially are actively looking to acquire a second or retirement home, and also they are planning on taking full advantage of the values and the opportunities available in the market we're in today.
Those who have all cash to buy real estate at 30 to 50 percent under what it is worth, end up with a positive income flow when they turn it into a rental. I'm bullish on how importance it is to encourage stronger investment in residential properties that I'm all for extending the depreciation time period for investments in real estate.
Right here in San Joaquin County, investors in our market, may possibly be the nationwide leader in single family rental homes, are acquiring properties based upon the rents they bring in, and not necessarily for the flipping potential. These investors have no timeline for reselling, they are looking to get a return of 10 percent or more on their money which they cannot obtain anyplace else, knowing that at some point they can sell the home they paid $130,000 for where someone else in the past bought for $430,000.. Families evicted by foreclosure from their homes in the San Joaquin market are searching for homes to live in and their only option is to rent. In time they'll get their credit repaired and save up for enough down payment to again qualify to buy a home.
By Gene Wright
Oct 17, 2011
Buying Real Estate
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