G’day all,
Just want to canvas the forum to what peoples theories are on what impact the following will have on the property market…
1. The likelyhood (inevitability) on interest rates raising. I have heard theories that if interest rates hit just 8% many homebuyers(whom are over committed) will be unable to afford increased repayment and hence may have to sell up. Will we see a sudden increase of house placed on the market with people wanting to “downsize”
2. The baby boomers coming through and the perceived trend of selling the 3/4 bedroom house and wanting to move into a smaller house/duplex/unit/retirement village. Will this mean a glut of 3/4 bedroom houses on the market?
Very intersted to hear peoples opinions as its confusing me a bit at the moment.
Cheers,
Battz
Hi Battz,
in response to your second point (although not directly in relaion to it <grin>), may I recommend a book?
The Pig and the Python: How to Prosper from the Aging Baby Boom by David Cork, Susan Lightstone
ISBN: 0761512756
Available from Amazon. I read it a couple of years ago and it gives the reader an insight regarding the babyboomers.Have a great day!
Marco
I think that despite the decrease in the size of the family that larger homes will always be popular. Lets face it the rich love large spacious homes even there is only one or two people living there.
People will convert the extra unused rooms to other purposes and this will give them scope to do so where as it is much more expensive to add a room to a small house or duplex.
Anyway just a thought!
davo70
Marco thanks for the reply, I’ll grab a copy of that book.
I was just a little concerned about the impact of the baby boomers leaving larger homes in search of small, low maintenance ones close to leisure facilities.
Cheers,.
Battz
Hi all,
My thoughts are thus, although the baby boomers are aging and will quite probably begin downsizing their homes. Many of them did not buy larger 4+ bedroom homes to start with.Also in lower socio economic areas such as in Brisbane the former housing commission areas which have almost all been given a facelift and sold of to first homebuyers, these younger people are being encouraged by the advent of the baby bonus to have larger families. Our population has over the past several years grown into the thinking that 2.2 kids is the average and that is just fine. But government is encouraging or at least trying too, women particularly to have more children and trend towards larger family sizes once more. With this in mind I think that there will always be a market for rental and wrapping 3/4+ bedroom homes. Many baby boomers are already making the move to smaller homes and even sea changes. The aging population is of concern and this is why the government has added the baby bonus and other increased incentives for young families.
So in otherwords tell your friends and kids to go forth and multiply. [
]g’day marco – i read that book. its based in canada i think and interestingly it said that in canada anyway approx 30 pct of babyboomers wld be moving from the family home. the report was written a few years ago.
Anyone read RICH DAD’S PROPHACEY?
what are the odds of what he says coming true
in AUS you all reckon? Would like to know.Can you tell me briefly what was written in the canadian based book? And what was said in “Rich Dads” book…
Cheers,
Battz
[
]hi battz71
Rich Dad’s Prophecy to me – set in usa, super funds of individuals basically in share market, cash in shares to survive (like pension), but as more and more baby boomers dump shares to convert to money, share prices may go down, requiring more shares to be converted to cash and so the prices may tumble. Questions? Will their super funds see them out? What will their quality of life be? Who will buy the shares being converted if there are less and less in the younger age brackets (inverted pyramid of age groups).
Made me think, recommend you read on afternoon.
[8D]
]
]hi battz71The topic ‘Baby Boomers & Interest Rates’ is closed to new replies.
