I read a article about the impact boomers will have in multiple areas when they retire... and there is a big splash with waves as we all dive into the retirement pond an eventually bob back up into the health care system bog!
One thing I read was that eventually boomers houses will be liquidated as they require smaller places, assisted living, Nursing home, die, etc... Depending on where you are in that wave... you could see your property value drop because of over supply of existing homes.
For example: I am in the middle of the baby boom gen. If I try to sell the house in 25 or 30 years... I will be competing for a smaller (and shrinking pool of buyers). For two reasons:
- Fewer people in the market to buy in general
- If you are in the middle or end of the boomers, everyone that wants and existing home will have already bought from someone who died (estate liquidation) and therefore not want one, or we will be competing for fewer buyer
- Older houses are often less attractive than newer except when it comes to location... There will be many houses for sale in your location.
What should we do? Plan to sell earlier and rent?
On the other side of the issue. If you own a home that is outfitted for handicapped people and age friendly, it might go for a premium. Since fewer homes are built that way, there is likely to be high demand as people run into mobility problems.
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Planned FIRE Summer 2011
Disclaimer: I make no warranty or guarantee about the accuracy or completeness of this information. I am not a financial planner, my comments only represent my opinion.
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