Catering to the property needs of Australia’s ageing population

A report by the Australian Government’s Department of The Treasury entitled ‘Australia to 2050: future challenges’, estimates that by 2050 there will be 2.7 people of working age for every person over 65. To put this figure into perspective, today there are approximately five people working for every person who is of retirement age. This dramatic shift in the make-up of Australia’s population will unquestionably have some important impacts on residential property markets. As such, real estate agents will likely have to adapt their approaches to listing and selling. 

Australia’s new generation of retirees will consist mainly of ageing baby boomers, many of whom may seek to maintain or improve their current lifestyles. Given such, the following factors may become increasingly relevant for real estate agents:

Baby boomers may look to downsize on their current property to finance a particular type of lifestyle. As a result, it is possible that some retirees may become stubborn in demanding selling prices which do not meet market expectations;

Balancing an enjoyable retirement with access to necessary amenities will likely be a key consideration for new retirees looking to a property. Consequently, peri-urban suburbs and properties, which have traditionally been the realm of working families, may become an important market for ageing homebuyers; 

Baby boomers may look to utilise property investment as a strategy for obtaining extra income and cash flow;

Baby boomers, although experienced, are often receptive to professional advice. Focus on efficient and comprehensive communication to facilitate a property outcome that can deliver them a happy and secure retirement.

Posted by Reality Bytes - Real Estate Training Blog on 22/08/2012 at 12:00 AM | Categories:

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