Australia’s cashed-up Baby Boomers are pouring their money into the Melbourne real estate market and thus leading to the rise in property prices across various market niches. The current generation of Baby Boomers is not easy to pigeonhole. They will not opt for retirement villages or enclaves but have particular and varied tastes.
Some prefer aspirational luxury property purchases while others are opting for the usual in the inner suburbs. Some are buying retirement homes while others are snapping up properties for investments. In various auctions either in Melbourne’s middle ring or inner suburbs, they have dominated the sales, helped by the low interest regime that makes property investment very attractive.
To understand Baby Boomers and ride their buying wave, you have to study them closely and figure out their preferences. In the past, it was an easy decision. Once someone retired, they were likely going to downsize and ship out to some remote retirement enclave. Today they are bound to stick around. They are not zoning off entire segments of the real estate market.
Instead, you are likely to see their nuanced hand in all kinds of real estate segments from the luxury end of the market where prices top upwards of $1 million to the entry level real estate market where they are running into direct competition with first-time millennial buyers.
The End of the Retirement Outposts
Baby Boomers have made adjustments in lifestyle preferences. They no longer will for a tranquil time in some retirement enclave with other happy-go-lucky retirees where they can enjoy some calm frugal living. Instead, they are at the centre of things and right in the mix with the rest of the population. With their money and varied tastes, they are helping drive up property prices across multiple market segments.
Baby Boomer Property Investments
Baby Boomers are putting their money in Melbourne’s tightly held residential properties in the inner city. You will also see their hand in the city’s northern suburbs where many of them will be willing to spend top dollars to acquire the properties that they want.
The Buying Behavior of the Australian Baby Boomer
Property investors must fully understand the needs and preferences of this demographic in order to meet the needs. They are cashed up and many of them will be looking to buying dream homes in some of the swankiest neighborhoods. Some of them will be playing at the entry level market, buying real estate for their kids or simply investing in property purely for speculation purposes.
Sometimes baby boomers do opt to downsize their living but not by retreating into retirement villages. A popular option for these buyers is the purchase of single-story buildings that gives them some kind of independence and where they are still able to maintain their lifestyle. Some Baby Boomers will not move at all. Instead, they will customize their homes in order to suit generational living.
They are not ordinary retirees so they will shun retirement enclaves such as Coastal Queensland and choose homes that are closer to the cities. This has often put them in the direct path of many first time homebuyers, who are often cash-strapped and end up losing to their cashed up seniors.
Baby Boomer buying has been a key driving factor of the Melbourne real estate market. If you are going to target this market, it is important to truly understand their preferences and investment choices. Location is definitely an important factor for them. They like it nice and trendy and if they can afford it, they will purchase something that is top of the line in the real estate market.