Baby Boomers: Strategies for success in retirement
Baby Boomers heading into retirement or even already enjoying their golden years, have much to think about when it comes to their future prosperity.
Aged roughly between 50 and 70 years old, this generation is looking for ways to ensure they can support themselves in their retirement years.
The objective is to buy and hold, but you also need to know where to buy and which market you are targeting – primary (which is eligible for tax concessions) or secondary (not eligible for tax concessions).
Investors need to understand that if they try to sell these properties they will be in the secondary markets so, if the reforms do take place, they may not qualify for tax concessions.
It’s true that the first couple of years prices could go down in some areas because they carry a high level of risk due to credit restrictions, a drop in foreign investors, and the reforms to negative gearing and capital gains tax but prices will go back up and then you have a property suitable for owner-occupiers.
It is important to choose properties that appeal to families who were more likely to be long-term tenants than singles.
This is especially the case if they have children and the unit is in a school catchment area. It must also have proximity to good transport solutions and parking is a must.
If you can attract good tenants, you can also reduce the costs associated with the changes of tenants such as letting fees and other expenses. It also means there is a low vacancy rate.
Good tenants mean you don’t have to spend as much on maintenance as they are more likely to look after the property.
Younger renters on a budget are more likely to move around and therefore you have a higher vacancy rate and letting fees.
Due to demand and affordability issues in places like Sydney, Melbourne and many areas in southeast Queensland, there was strong demand for such properties by owner-occupiers, so not only were they likely to achieve healthy capital growth, the potential audience in the market was higher.
Small units with one or two bedrooms are not as suitable for families have less a demand for owner-occupiers and therefore presented greater risk.
If you are considering buying or renting a property on the Mornington Peninsula, and want to know what has recently sold so you can get an idea of where the market is, you can download our FREE report HERE.
You can also review our current listings