If it’s true that ‘Age is the price of wisdom…’, rest assured that we have much to learn from the Baby Boomers when it comes to making the most of a modern retirement. According to Freddie Mac’s Insight Report, ‘Fun After Fifty’, Baby Boomers are echoing the theme of Peter Pan…and are NOT growing up and out anytime soon. If you expect Boomers (those born from the time World War II ended through 1964) to slow down, sell and downsize…you might be in for a surprise.
While the population aged 55 and older makes up one-quarter of the general population, they control roughly two-thirds of single-family home equity. Consider that a 65-year-old today who purchased their home approximately 35 years ago has seen their home increase 3.7 times in value! It’s no wonder that it’s not just the Millennials who are shaping the future of the housing economy.
Gone are the days when people retired by age 60 and started seeking solace in smaller homes or considering assisted living. In addition, fewer and fewer older adults are opting to pay off their mortgages (which conventional wisdom once advised), likely due to tax implications, overall portfolio analysis and strategic preference. Older adults are working longer, maintaining more active lifestyles, choosing to age in place and even up-size or purchase a second home. The fate of the real estate industry is perhaps more dependent on the choices of seasoned homeowners and equity-affluent adults aged 55+ than the first-time home buyers and oft-talked of Millennials. In fact, nearly 40% of adults in the Freddie Mac 55+ Survey noted the intention to move at least one more time.
The moral of the story…don’t assume that the beginning of your story is going to have a much richer, fuller and vibrant tale than the last chapter. Today’s aging generation is living proof that the best is truly yet to come, and that real estate is a proven way to get there.
Learn more at: Freddie Mac Insight | Fun After Fifty
http://www.freddiemac.com/finance/report/20160719_fun_after_fifty.html
Also Visit: Mortgage News Daily | Boomers Ignoring Conventional Housing Wisdom
http://www.mortgagenewsdaily.com/07192016_generational_studies.asp
Cheers to real estate fun & financial well-being at any age,
Mark & Jason