Australia has always been known as "The Lucky Country", but a large portion of Baby Boomers may feel quite differently once they retire. A reported 38% of Baby Boomers believe that they won't have enough money to fund retirement. What this means is instead of retiring to enjoy a care-free existence, they may be living with the fear that they may live too long than their finances allow for.
Recent reports are outlining that a large chunk of Baby Boomers believe that they are not well placed for retirement, and rather than enjoying their "Golden Years" with the grand kids, we are seeing the older generation of Australian's further impacted by the rising property market, and to a degree, living with uncertainty.
Many future retirees have had the plan to sell the family home once it's reached a certain price range (many people I speak with have always had the $1 million mark in mind). And now that we have seen this mark become the Sydney average, many Sydney based retirees are looking to push the retirement button, sell the family home, and then downsize to a smaller property.
This intention of downsizing the family home to a more manageable residence is becoming a harder and harder target to hit, as once affordable markets slip from their financial grasp.
This "Affordability" issue is allegedly the largest concern for those living in NSW, with a recent report stating that 60% were concerned that they would be priced out of their local market, compared to the national average of 49%.
Affordability is such a key issue for retirees that it's actually second on their criteria for possible retirement destinations. And in case you were wondering, number one is "Sea Change". Combine these two factors together and you start to see a pattern of where these retirees may migrate to.
While this issue is troubling, and my heart does go out to those who find themselves in this position, not all hope is lost.
While property prices are rising nationally, there are still good, desirable property markets around the country where great quality homes are being sold at affordable prices.
And for this reason, among several others, we continue to see properties in large regional markets such as Port Macquarie and Coffs Harbour be in strong demand. Why? Because of their great hospitals, airports, roads, beach side living and cafe cultures. And not to mention... affordable property!
No wonder these markets regularly have vacancy rates under 1% (for every 100 homes, on average only one does not have a tenant at any given time).
Believe it or not, it's still possible to get a great property for under $400,000 in these markets. And retirees are not the only ones taking advantage, with smart investors also capturing this stock, enjoying better than average long term capital growth, with a great mature tenant taking care of the property like it's their own.