Trending For Your Success
As I look back on 2021, it doesn’t feel much different than 2020.
You can either beat yourself up and think that this pandemic is not ending anytime soon, or you can observe that we as a society are making progress.
Having published my first book, 31 Days to Purchasing and Renting Your First Investment Real Estate Property, in 2021, I knew there were investment real estate opportunities for my readers.
My goal is to review trends and share my insights with you through my book and blog.
Google Trends about Aging in 2021
The following were the top three queries:
- Average Social Security Cheque at age 62. Up 2000%
- Covid survival rate by age group? Up 1450%
- What age could I retire with full benefits? Up 950%
Interesting how the top two out of three aging trends are about retirement income. The average age to access and what age does the money comes with full benefits?
Are you one of the folks asking?
In a world where companies need employees and pay higher salaries than we have seen in years, are there more opportunities for every generation?
Why are Boomers looking to pull the plug on work and see retirement as their real option?
We close in on the second full year of COVID-19 and with all the deaths. Yet, the average life expectancy age continues to rise. The COVID scare lingers.
The Opportunity – Investment Real Estate
If you are a Generation X, a Millennial, or Gen Z, I would be looking for opportunities created by the Boomers running head on its retirement.
Many of these Boomers will need money to fund a retirement they can’t afford.
Money in Their Homes
What is going to be easy money for the Boomers to access first? Of course, it will be the cash in their homes.
The Boomers might start with a line of credit (LOC) against their home’s equity.
The Scales Tip
But because Boomers are living longer than they thought, they will look to sell their houses to access the rest of their home’s equity.
Where will the Boomers live? They will have to rent.
As a Generation X, Millennial or Gen Z, you have a tremendous opportunity to buy real estate at a reasonable price and, in addition, rent it back to a Generation who still wants a nice place to live.
What to Type of Homes to Purchase from these Boomers?
- Older Home as Infill
- Bungalow, with separate entrance to basement.
Why these two types of properties?
First, older homes in the core of a city or town are generally close to shopping, entertainment venues, bars, and restaurants. More importantly, they are close to multiple transportation options, and even the cost of Uber or taxi services will not break the bank for a person to go somewhere.
The other important thing about older homes is most towns and cities have changed their zoning laws to allow you to tear down the house and develop a duplex, triplex, or maybe even a quadplex.
The zoning gives you another option, allowing you to build an income suite in the backyard or above the garage. In addition, you might convert a garage into a rental suite.
Check your city or town’s zoning bylaws, and you might be pleasantly surprised.
After you renovate, the owner might want to move back to a part of their old home.
Think about the opportunity to finance if you had a lease in your hand when you visit your lender.
The opportunity is to create an income suite with a separate entrance to the basement.
In addition, there maybe be city or town grants available for you to develop an income suite in the basement.
You have gone from one property to rent to two-income suites under the same roof.
Also, the owners you purchase from may not need all the space they had before; therefore, one level of the home would work for them.
Again you would have a lease in hand as you talk to your lender about financing.
The Aging Lesson
Time stands still for no one but with medical and scientific advances, creating situations where the average life expectancy for each generation is rising. So, therefore, are you Going to be Ready?
As a Generation X, Millennial, or Gen Z, will you let history repeat itself when it comes to you living longer than the previous generation?
Will you have the funds available for you to live “Well” as you age?
It’s your choice!
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