Baby boomers growing skeptical of the stock market often turn to real estate to continue to grow their retirement funds. When it comes to the best tips for finding a desirable neighborhood for property investment, consider a 55 plus living community. As a baby boomer investor, it’s not difficult to imagine what your peers want in a home. Boomers like contemporary, open and airy living spaces ideal for an active lifestyle as well as room for entertaining and visiting with family. With so many baby boomers choosing to rent, there is a huge demand for attractive rental homes. When buying a home as an investment in The Woodlands, Texas, and nearby areas, avoid falling into the short-term rental trap. A lot of communities discourage short-term rentals such as Airbnb. Instead, focus on retirees interested in renting with a 12-month lease. According to an article by biggerpockets.com, the massive baby boomer demographic will be hungry for rentals in the next five years.
Filling a growing need
Experts point out that baby boomers are currently underserved with regard to quality rentals in senior living communities. At this time, there are more than 76 million boomers born between 1946 and 1964. As of 2018, the median age of a boomer is 63 years old. Although not everyone enjoys early retirement, having a passive income from a rental property boosts retirement income. Owning a rental is a wise financial move for many people, considering the average social security payment in 2017 was only $1,317. A survey by Freddie Mac showed 71 percent of respondents who were over the age of 55 said they plan to rent the next time they move.
Knowing the top attractions
Some of the top housing factors for baby boomers include affordability and retirement amenities such as communities that take care of the property and houses close to shops and restaurants. Consider investing in a “walkable community.” As far as the home itself, most baby boomers prefer at least 3 or 4 bedrooms and two bathrooms. If possible, invest in one-story homes with split floor plans to create privacy for guests. Even though they like to downsize, most baby boomers don’t want to feel too cramped either. Ideal square footage ranges from 1,600 to 2,300 square feet.
When investing in real estate, cater to empty-nesters to boost market rent and minimize tenant turnover. For more tips on real estate investing, or finding your perfect home in a local 55 plus community, please contact us today.