Who Are these Boomers?
What can I say? If you are a Boomer, than I am YOU! In fact, I have to admit that I am in that illustrious group that was born right after WWII, so I know that there are thousands of people coming down the pike who are pondering about what to do and where to be in their retirement years.
We have worked for 40 years, raised our families, and have saved for our “golden years.” Many of us have worked hard to stay as healthy as possible, plan on checking off a few great experiences on our bucket lists, but we are still actively employed. Those of us who are grandparents would like to find a spot to retire that would inspire our families to visit…if not for weeks, at least for several days.
As a Realtor on Cape Cod, I have seen a change in our buyer demographic. Granted there are still many buyers with young families looking to purchase a vacation home near the beach, but more and more I am seeing couples who are closer to retirement age. They are looking to purchase a property that they can enjoy on weekends, summer vacations, and holidays now, viewing this as their permanent home in their retirement future. Often this property is smaller than their current family home, as they are thinking that they will want to downsize. Some of these boomers are also thinking about purchasing a “snowbird” retreat in Florida or Arizona if and when Cape Cod winters get to be too long. Others in this demographic are looking to purchase their “dream home” with waterviews, private docks, and plenty of space for family and guests. Of course, my team and I are very happy to share our local knowledge with any of these buyers.
So Why Now?
These boomers have paid attention to the stock market, the Cape Cod housing market and to mortgage interest rates. They believe that the time is right to invest in real estate, and they have the cash to do so. Some of these potential buyers who still are two-income families can afford to pay for an additional mortgage. Others (who have paid down the mortgages on their current homes) can afford to pay for their new homes using home equity on their current family homes. Others have savings that they are willing to invest.
In a recent Wall Street Journal article by Anya Martin, she reports on buyers in the upper 1% who are purchasing homes in the Hamptons in New York. Click here to read more. Some of these buyers are in need of jumbo loans to finance their retirement homes. Frankly, there are dangers involved in incurring such debt. And I would be very reluctant to encourage anyone close to retirement to extend beyond their comfort level.
Fortunately, on Cape Cod there are much more affordable options for Boomers of all income levels. With a bit of research and a good Realtor to guide you, you may well find that dream home with a waterview!
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