The Baby Boomer Effect: How it Will Affect Your Home Equity

By Jonathan Haeber
CMR Columnist

This past year the oldest members of the baby boomer generation turned 60. It's a big turning point for the California real estate climate. Statistics and studies all say that baby boomers will help spur a new growth in real estate that is yet to be fully realized. The secret to this growth is selecting the right property.

Baby Boomers' Pent-up Demand

Baby boomers have been savvy investors. Unlike the younger generations, they don't spend much, buy real estate assiduously, and save up like mad. Many are savvy real estate investors, and most have their eyes set on a new living arrangement: Condominium Hotels.

"If only 1% of this generation demands condo hotels" says Bob Waun, of vacation-finance.com, "1.45 million units will be needed. Thats 96,000 per year, every year." Considering that the baby boomer generation spans 15 years, we're in for a long and sustained demand for condo hotels.

Do Your Research Before Taking out a California Home Loan

However, you should exercise caution before taking out a mortgage in condominium units. Select a location that will be in high demand by baby boomers -- this includes resort locations, and highly sought-after urban locations; baby boomers are surprisingly migrating to the city center in search of culture and convenience.

In today's bleak real estate climate, the post-war generation may be our saviors, and if you invest smartly, you can cash in on the growing demand for condominium homes. Before you decide on a California home loan, it's best to choose a location, find a budget for your investment, and determine if you're willing to wait a few years for your home equity to grow. We're just beginning to see the effect, but prices may not increase until the core demographic of the baby boomers begins choosing condos as their new home.

Source
Condo Hotels: Baby Boomer's New Retirement Option

About the Author
Jonathan Haeber is a marketing writer for Discovery Channel Stores. He recently purchased his first home, and took a self-taught crash course in home mortgages.

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