Where are the best places to invest in Australia? One group in particular holds valuable clues about the best places to invest in Australia: the ‘Baby Boomers’. Understanding this generation will arm you with valuable property selection fundamentals, rather than rely on heresay and the media’s endless claims about the next ‘best place to invest’ in Australia.
Who are the Baby Boomers?
Baby Boomers was the term given to the generation who were born between 1946 and 1964. Eighteen years of substantially increased birth rates sparked initially by the baby drought during World War II.
This generation has caused industry booms throughout their lifecycle, from nappies, toys, bicycles to cars and indeed property – twice. The first property boom started when the Boomers were in their twenties, the second we are experiencing now.
Life of the typical Boomer
With the first of the Boomers turning 70 this year, we are seeing some interesting demographic changes and movement. Typically, the average Boomer at this age is retired or close to it, has paid off the family home – the great Australian dream – has relatively little super and little-to-no savings (because everything has been pumped into the mortgage).
Then the reality of how little the pension is becomes apparent and concerns about their lifestyle creep in.
Well for most of those who have bought homes in capital cities (especially Melbourne and Sydney) in the 1970’s and 1980’s are sitting on a sizeable asset. This is great but it doesn’t pay the bills. They have been thinking of downsizing to something more manageable with less maintenance anyway so why not free up some cash to subsidise the government contributions?
They can get a nice apartment or townhouse in the same neighbourhood and everything will be fine. Until they realise how expensive the downsize options are in that area.
OK, time to look at plan B. Where can they move to where they can be happy and have a decent chunk of change at the end?
Boomer priorities = Tips for investors about best places to invest in Australia
What are the priorities they have at this stage of life?
“We finally have the time to do the things we enjoy whenever we want to do them.”
Property selection tip: Look for properties near facilities and pleasant environments eg. sea, forests, resorts/golf, shopping centres, food strips.
“We need to be able to visit our friends and family easily; and we want the same for them as well.”
Property selection tip: Make sure the area has good roads leading to and from, efficient public transport and ideally an airport.
“We are not getting any younger and need to be close to good medical facilities.”
Property selection tip: Choose properties near hospitals, medical centres, and clinics.
“We are still a long way from this but good to know it is there.”
Property selection tip: The area should be investing in aged care homes and retirement villages.
As a result of this scenario we are seeing Boomers sell up and relocate to areas that tick all of these boxes.
They are taking over towns and small cities that were once sleepy hollows and turning them into thriving metropolises. And this is just the beginning. Remember there is 18 years of them to follow.
This is a great opportunity for investors to take advantage of.
Property selection tips
To find the best places to invest in Australia, choose properties in areas with:
- Facilities and pleasant environments eg. sea, forests, resorts/golf, shopping centres, food strips
- Good roads, efficient public transport and airports
- Hospitals, medical centres, and clinics
- Aged care homes and retirement villages
- Planning information about any area in Australia is easily available online on state government and local council websites.
I hope this has given you a good insight about the Baby Boomers and how you can choose a good area to invest from your newfound knowledge. We encourage you to read further to boost your knowledge about property fundamentals and know what strategies are available to you, whether you’re a young family, single, or an empty nester.
Oh, you need some help in your search to find the best place to invest in Australia? I’d be happy to chat to you about your situation and give you ideas about how you could invest in areas the Boomers are moving to within Australia. Book your free, no-obligation consultation.