Holiday Home Sales are (baby) Booming!

by : Marc Talon

Even though we have been reading of a downturn in realty, some areas are still booming; why is this? We all want to buy a home that is going to hold its price, but what is the secret? How can you ensure that your home will remain a viable asset? What is the secret to being a successful real estate investor?

Alas, there is no tried and tested formula; investing money will always have some risk. But, one secret when buying real estate is to gauge the future market and to buy the type of home that will be in demand for a few years to come. This is where you have to take into account the demographics of our society.

Happily for people buying real estate, the demographics are startlingly clear in one area: the largest population ever of retirees, will be approaching retirement age in a few short years. For people investing in real estate, or wanting to buy a home that keeps its value, this could be an indicator of what to buy. At least one type of home that will be in demand will obviously be the 'retirement choice' home.

This will often be a condo, or some other kind of small home. This means that a condo may be a good investment for now, as many of the 'baby boomers' will be thinking of buying one in about five years time, when they reach 65 - and retire. (Baby boomers were all born in the first few years after World War ll when life returned to normal and consequently the birthrate soared.)

Baby Boomers account for a very large part of the population. One theory is that they will be the last generation to have a generous pension, and can therefore afford to change their home. Beach front towns and resorts are already experiencing an increase in sales.

Many of us anticipate, and it will often happen, that when retirement time arrive, we will move. Sometimes it will be downscaling in size and staying in the same area to keep friends and loved ones close by. In other circumstances, it may require a complete change of scenery to move to be with our families. Many people pursue their life dream upon retirement, and perhaps go and live in a warm sunny climate, by the beach, or in the mountains. Either way, it involves buying and selling a home.

Above average sales are still being experienced in prime retirement areas. The baby boomers are only just beginning to retire and most of them are still working. This is because the (birth) boom started in 1946, and so the oldest boomers are still only 61, with most working until age 65.

Buying a retirement home ahead of the retirement is the optimum choice, it is easier to finance it before the salary must be given up and the pension kicks in. If you are a baby boomer it is good sense to get in now before the real rush happens in 2011 (when the first wave of baby boomers reach 65).

This means it is still a good time to buy a home and expect a profit in many of these choice areas.