Author: Robert Valentine
They may not be glamorous or bring extreme returns. But then, they aren't meant to. Recently, money market mutual funds have found their way into a broad variety of investor's portfolios as their returns have increased and their attractive reliability has continued.
Between June 2004 and September 2005, money market yields increased from over a half a percent, to 2.89 percent, according to an Associated Press story in early-September 2005.1 A rather large jump to say the least.
Serving as a temporary investment vehicle for those not ready to invest, money market funds are generally a short-term savings tool that, in comparison to many investments, is considered safer and more reliable.
Using the advantages of a mutual fund, a money market version typically invests in a variety of things including CDs, U.S. Treasury securities and debt-obligations. By investing in a money market mutual fund, you're also benefiting from a possibility of higher returns than those available from individual investment in a CD or money market account.
An investment in a money market mutual fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.
Tax savings are another potential plus. You may be able to take advantage of a tax-free money market mutual fund. These are usually funds that purchase short-term debt from tax-free organizations, like state or local government. While their yield is usually lower, you have the potential of saving the difference in taxes.
Many money market mutual funds also offer an advantage if you're invested in several other types of mutual funds within the same fund company. A money market mutual fund can act as temporary storage if you sell off assets in a mutual fund and wish to keep them in the fund company before investing in another fund. In comparison to other options, this is a relatively easy way to transfer money between funds and still potentially benefit while you choose your next mutual fund investment.
Money market mutual funds can serve a variety of investors but can be most attractive to smaller investors. Many have easier withdrawal features including check writing or wire transfer if you choose to close or move money from an account. Always consult with a financial professional before deciding what investment moves to make. They may be able to guide you to a better option.
Investing in a money market mutual fund is meant for an investor with a specific set of circumstances and objectives. They certainly aren't glamorous, and they won't help you retire in style any time soon. But they may be able to offer you tax savings, which is always attractive.
1 Meg Richards, "Money-Market Mutual Funds Surge," Associated Press, September 4, 2005.
Thursday, September 20, 2007
Wednesday, March 14, 2007
Affordable Living and Retirement in Nova Scotia, Canada by Shannon Roxborough
If you're budget-minded, don't mind a bit of cold weather (or are seeking the perfect warm-weather retreat), love seafood, and have a historic mindset, then Nova Scotia is the place for you.
During the late 19th-century, Nova Scotia beckoned a select group of wealthy families, who traveled by train and steamer to their grand seaside Victorian "cottages" from New York, Boston, Philadelphia and other industrial hotbeds.
Little has changed in 100 years at this summer colony in the North Atlantic: The atmosphere is still somewhat staid, unhurried and family-oriented. The pristine coast is uncrowded and less developed than anywhere in North America; the real estate still costs just a fraction of that in the United States and Europe.
Nova Scotia, located on Canada's Atlantic coast east of Maine, is shaped like a lobster with its claws grasping toward the remote province of Newfoundland and its tail pointing in the direction of New York and Boston. Latin for "New Scotland," Nova Scotia is named for its resemblance to the homeland of some its first European settlers. The Scottish print on this land is large, but so is that of the Irish, French and the British--with each culture having left its mark.
About half the size of New York State with a population just under a million, Nova Scotia boasts 3,600-miles of craggy shoreline sprinkled with scenic fishing villages and quaint small towns. Long a destination for vacationers and retirees from throughout Canada, in recent years, the once sleepy region has been attracting American and European transplants with its seductive beauty, rich history, slow pace, proximity to the United States and, of course, affordable real estate.
Perhaps nowhere in Nova Scotia is the official label "Canada's Ocean Playground" more pronounced than on the South Shore. In the heart of this region along Nova Scotia's picturesque Lighthouse Route lies White Point Estates, a charming oceanside residential community developed amid White Point Beach Resort & Country Club--once a private lodge for well-heeled outdoorsmen. On prime oceanfront fringed by white sand beaches, lush woodlands and a flowing river, White Point, is a microcosm of the best of Nova Scotia. With its laid-back historic ambience and hypnotic water views, the new seaside enclave seems almost too good to be true.
In the midst of a sprawling 159-room resort with lodges and private cottages and a 9-hole CPGA-rated golf course to boot, White Point offers a variety of lots to build on. They range from 3/4 of an acre to roughly 2 acres and are priced starting at $45,000. Building lot choices offer something for everyone; including gently-sloping wooded spreads and stunning oceanfront (and waterview) sites. Here, in-the-know expatriates and Canadians are buying lots to build vacation and full-time residences in an area where they will rub elbows with cosmopolitan transplants, tourists, seafarers and locals. So far, a handful of lots have been sold, but given their prices and the accompanying amenities, including a a host of services and recreational opportunities, they are sure to go fast. And, White Point will work with you through every step of the home-building process.
Sales of vacation and future retirement properties in places like White Point Estates are booming, real estate specialists say. Cost-conscious and city-weary arrivals from afar increasingly seek respite and new starts in Nova Scotia. No wonder the maritime province is increasingly lighting up the radar screens of those searching for an affordable alternative to traditional vacation, second home and retirement retreats, where rising home prices have left many priced-out of the market.
Since the media--including the likes of Consumer Reports, International Living and CNN--have begun to rate Nova Scotia among the world's best places to vacation, live and retire, property costs have risen as much as 50% annually in some areas of the province. Yet despite the price increases, property here remains a fraction of what one would pay for similar real estate back home. And with enticements like some of the world's most spectacular scenery, a relatively temperate climate (winters are milder than the northern U.S.), and a low profile, stress-free lifestyle far from the rat race, wars and terrorism, it's easy to see why life looks so good under the Maple Leaf.
For details about White Point Estates, visit http://www.whitepointestates.com or contact Doug Fawthrop at 902-354-2711, ext. 370 (toll-free 800-613-2171), e-mail: doug@whitepoint.com.
Getting There Nova Scotia is close enough to the U.S. and Europe that you won't get jet lag getting there. The capital Halifax is a 2-hour flight from New York; 6 hours from London. Portland, Maine, from which the 5.5-hour ferry departs to Nova Scotia, is about a 90-minute drive from Boston. For ferry information, visit: http://www.catferry.com.
Where to Stay White Point Estates offers a Site Inspection Package (couples for $159 weekdays; $199 weekends), allowing prospective buyers to visit for two nights at White Point Beach Resort while exploring all that the community has to offer. To reserve a tour, call 1-800-613-2171.
For More Information Passport to Canada: The Complete Guide to Living and Retiring in Nova Scotia, an eBook available at http://www.thegloballife.net.
About the Author
Shannon Roxborough is a writer and international consultant who has assisted hundreds of clients with relocation to dozens of countries. He has been writing about and researching worldwide destinations for living and retirement since the eighties. He authors the "Getting Away" column for The Record, a daily paper in a a suburb of New York City, covering second and vacation homes in the U.S. and abroad. His website is http://www.shannonrox.info
During the late 19th-century, Nova Scotia beckoned a select group of wealthy families, who traveled by train and steamer to their grand seaside Victorian "cottages" from New York, Boston, Philadelphia and other industrial hotbeds.
Little has changed in 100 years at this summer colony in the North Atlantic: The atmosphere is still somewhat staid, unhurried and family-oriented. The pristine coast is uncrowded and less developed than anywhere in North America; the real estate still costs just a fraction of that in the United States and Europe.
Nova Scotia, located on Canada's Atlantic coast east of Maine, is shaped like a lobster with its claws grasping toward the remote province of Newfoundland and its tail pointing in the direction of New York and Boston. Latin for "New Scotland," Nova Scotia is named for its resemblance to the homeland of some its first European settlers. The Scottish print on this land is large, but so is that of the Irish, French and the British--with each culture having left its mark.
About half the size of New York State with a population just under a million, Nova Scotia boasts 3,600-miles of craggy shoreline sprinkled with scenic fishing villages and quaint small towns. Long a destination for vacationers and retirees from throughout Canada, in recent years, the once sleepy region has been attracting American and European transplants with its seductive beauty, rich history, slow pace, proximity to the United States and, of course, affordable real estate.
Perhaps nowhere in Nova Scotia is the official label "Canada's Ocean Playground" more pronounced than on the South Shore. In the heart of this region along Nova Scotia's picturesque Lighthouse Route lies White Point Estates, a charming oceanside residential community developed amid White Point Beach Resort & Country Club--once a private lodge for well-heeled outdoorsmen. On prime oceanfront fringed by white sand beaches, lush woodlands and a flowing river, White Point, is a microcosm of the best of Nova Scotia. With its laid-back historic ambience and hypnotic water views, the new seaside enclave seems almost too good to be true.
In the midst of a sprawling 159-room resort with lodges and private cottages and a 9-hole CPGA-rated golf course to boot, White Point offers a variety of lots to build on. They range from 3/4 of an acre to roughly 2 acres and are priced starting at $45,000. Building lot choices offer something for everyone; including gently-sloping wooded spreads and stunning oceanfront (and waterview) sites. Here, in-the-know expatriates and Canadians are buying lots to build vacation and full-time residences in an area where they will rub elbows with cosmopolitan transplants, tourists, seafarers and locals. So far, a handful of lots have been sold, but given their prices and the accompanying amenities, including a a host of services and recreational opportunities, they are sure to go fast. And, White Point will work with you through every step of the home-building process.
Sales of vacation and future retirement properties in places like White Point Estates are booming, real estate specialists say. Cost-conscious and city-weary arrivals from afar increasingly seek respite and new starts in Nova Scotia. No wonder the maritime province is increasingly lighting up the radar screens of those searching for an affordable alternative to traditional vacation, second home and retirement retreats, where rising home prices have left many priced-out of the market.
Since the media--including the likes of Consumer Reports, International Living and CNN--have begun to rate Nova Scotia among the world's best places to vacation, live and retire, property costs have risen as much as 50% annually in some areas of the province. Yet despite the price increases, property here remains a fraction of what one would pay for similar real estate back home. And with enticements like some of the world's most spectacular scenery, a relatively temperate climate (winters are milder than the northern U.S.), and a low profile, stress-free lifestyle far from the rat race, wars and terrorism, it's easy to see why life looks so good under the Maple Leaf.
For details about White Point Estates, visit http://www.whitepointestates.com or contact Doug Fawthrop at 902-354-2711, ext. 370 (toll-free 800-613-2171), e-mail: doug@whitepoint.com.
Getting There Nova Scotia is close enough to the U.S. and Europe that you won't get jet lag getting there. The capital Halifax is a 2-hour flight from New York; 6 hours from London. Portland, Maine, from which the 5.5-hour ferry departs to Nova Scotia, is about a 90-minute drive from Boston. For ferry information, visit: http://www.catferry.com.
Where to Stay White Point Estates offers a Site Inspection Package (couples for $159 weekdays; $199 weekends), allowing prospective buyers to visit for two nights at White Point Beach Resort while exploring all that the community has to offer. To reserve a tour, call 1-800-613-2171.
For More Information Passport to Canada: The Complete Guide to Living and Retiring in Nova Scotia, an eBook available at http://www.thegloballife.net.
About the Author
Shannon Roxborough is a writer and international consultant who has assisted hundreds of clients with relocation to dozens of countries. He has been writing about and researching worldwide destinations for living and retirement since the eighties. He authors the "Getting Away" column for The Record, a daily paper in a a suburb of New York City, covering second and vacation homes in the U.S. and abroad. His website is http://www.shannonrox.info
Wednesday, February 28, 2007
Using Retirement Savings for Your Down Payment by Dan Lewis
One of the biggest hurdles to buying your first home is coming up with the down payment. Alas, you may already have it and not even realize it.
Long ago, you needed twenty percent of the value of the home you were interested in as a down payment. On a $300,000 home, that equated to a whopping $60,000. As you can guess, few people could afford such a cost on a new home. The mortgage industry slowly but surely evolved a more liberal attitude towards down payments. These days you need much smaller percentages of the value as down payments. At the same time, prices have risen dramatically, so it can be a catch-22 situation.
When you make the decision to buy a home, you most likely will still need to come up with a down payment. Yes, there are programs that do not require them, but they often are not good deals. The primary reason has to do with the risk of getting upside down on the home. If you do not make a down payment, you have no equity in the home. If the value of the home drops, as we are seeing now in many parts of the country, you suddenly can owe more than the home is worth. Hopefully, the value will bounce back, but it is not a good situation to be in.
When dealing with down payments, there are a couple of ways you can go about the process. The first is to simply save up money over time. The problem, of course, is this takes time. You can also borrow money from family and so on, but I want to focus on a lesser-known option.
If you are a salaried employee, your employer may offer you a 401k program. You should be investing as much as possible in it given the pre-tax factor. Regardless, you should be vested in a certain amount of the money held in the 401k. Well, guess what? You can borrow from it. In this case, you can do so to use the money as a down payment on a new home.
When borrowing from your 401k program, it is important to talk with the person in charge of it so you can get a grasp of the rules. Generally, you can borrow up to 50 percent of your vested amount. The money must be repaid over five years at an interest rate set for the particular plan. The advantage of this approach is that you are paying yourself interest instead of a bank.
If you are stuck on the down payment issue, try getting creative. Take a look at your options with your retirement accounts. Often you can borrow against them to get into a home.
About the Author
Dan Lewis is with Great Western Mortgage - California mortgage brokers providing California home loans.
Long ago, you needed twenty percent of the value of the home you were interested in as a down payment. On a $300,000 home, that equated to a whopping $60,000. As you can guess, few people could afford such a cost on a new home. The mortgage industry slowly but surely evolved a more liberal attitude towards down payments. These days you need much smaller percentages of the value as down payments. At the same time, prices have risen dramatically, so it can be a catch-22 situation.
When you make the decision to buy a home, you most likely will still need to come up with a down payment. Yes, there are programs that do not require them, but they often are not good deals. The primary reason has to do with the risk of getting upside down on the home. If you do not make a down payment, you have no equity in the home. If the value of the home drops, as we are seeing now in many parts of the country, you suddenly can owe more than the home is worth. Hopefully, the value will bounce back, but it is not a good situation to be in.
When dealing with down payments, there are a couple of ways you can go about the process. The first is to simply save up money over time. The problem, of course, is this takes time. You can also borrow money from family and so on, but I want to focus on a lesser-known option.
If you are a salaried employee, your employer may offer you a 401k program. You should be investing as much as possible in it given the pre-tax factor. Regardless, you should be vested in a certain amount of the money held in the 401k. Well, guess what? You can borrow from it. In this case, you can do so to use the money as a down payment on a new home.
When borrowing from your 401k program, it is important to talk with the person in charge of it so you can get a grasp of the rules. Generally, you can borrow up to 50 percent of your vested amount. The money must be repaid over five years at an interest rate set for the particular plan. The advantage of this approach is that you are paying yourself interest instead of a bank.
If you are stuck on the down payment issue, try getting creative. Take a look at your options with your retirement accounts. Often you can borrow against them to get into a home.
About the Author
Dan Lewis is with Great Western Mortgage - California mortgage brokers providing California home loans.
Saturday, February 24, 2007
Save for Retirement
by Martin Lukac
Save money for retirement at an early age. The earlier you start saving the better it is for you as we are all getting older everyday.
There are many ways to save money for retirement so be sure you find a plan that will benefit you and your loved ones. Do some researching before deciding on the plan you want to invest in; be sure that you are earning interest on your investments at the highest rates possible.
Deciding on the amount you want to invest each month by calculating the number of years until you plan to retire can be done from using the retirement calculator on the Internet. You can also get the percentage rates from your investor; as well, they will be glad to help you in making your decisions.
Saving for you and your loved ones after retirement by investing is one of the most effective ways to help you when you decide that your working days are over.
You can invest into different corporations like Edward and Jones or Mutual Funds along with many others.
Using the 401K retirement plan is the easiest and most effective retirement's plans available. Your work employer contributes up to a certain percentage to match what you have taken from your check. As your money accumulates it, will increase as the stocks go up? You will draw interest on your investments as well.
When you invest into a 401K program the money you have taken from your check will be deferred from having to pay taxes on it. Your money will stay tax-free until you remove the program. If you draw the money out early, you have to pay a penalty so once you invest into your 401K try to leave it there. You can borrow on it after you have a certain amount in but plan on paying a high interest rate. There is an advantage to this because the interest goes back into your investments giving you the interest as well.
You can invest your own money by putting it into CD's. The CD rates vary according to the number of years or months that you chose to leave it there. The longer you invest your money in CD's the more interest you will receive and than the interest can be rolled back into the money to receive interest on the interest money you've already earned.
Set up an IRA plan with your bank investing your money to it for retirement as well. You can have a portion or all of your income tax rolled over to your IRA plan each year. Your interest that you earn can be rolled over here as well to earn more interest.
Retirement plans can earn you money to make more money. You can get advice from your local investors to find the best plan for you at the highest rates of interest.
Plan your savings for retirement early to get the best rates and investments advantages as possible. You and your family will benefit later in life.
About the Author
RateEmpire.com, http://www.RateEmpire.com an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com and search engine marketing website http://www.EnginePromoter.com
Save money for retirement at an early age. The earlier you start saving the better it is for you as we are all getting older everyday.
There are many ways to save money for retirement so be sure you find a plan that will benefit you and your loved ones. Do some researching before deciding on the plan you want to invest in; be sure that you are earning interest on your investments at the highest rates possible.
Deciding on the amount you want to invest each month by calculating the number of years until you plan to retire can be done from using the retirement calculator on the Internet. You can also get the percentage rates from your investor; as well, they will be glad to help you in making your decisions.
Saving for you and your loved ones after retirement by investing is one of the most effective ways to help you when you decide that your working days are over.
You can invest into different corporations like Edward and Jones or Mutual Funds along with many others.
Using the 401K retirement plan is the easiest and most effective retirement's plans available. Your work employer contributes up to a certain percentage to match what you have taken from your check. As your money accumulates it, will increase as the stocks go up? You will draw interest on your investments as well.
When you invest into a 401K program the money you have taken from your check will be deferred from having to pay taxes on it. Your money will stay tax-free until you remove the program. If you draw the money out early, you have to pay a penalty so once you invest into your 401K try to leave it there. You can borrow on it after you have a certain amount in but plan on paying a high interest rate. There is an advantage to this because the interest goes back into your investments giving you the interest as well.
You can invest your own money by putting it into CD's. The CD rates vary according to the number of years or months that you chose to leave it there. The longer you invest your money in CD's the more interest you will receive and than the interest can be rolled back into the money to receive interest on the interest money you've already earned.
Set up an IRA plan with your bank investing your money to it for retirement as well. You can have a portion or all of your income tax rolled over to your IRA plan each year. Your interest that you earn can be rolled over here as well to earn more interest.
Retirement plans can earn you money to make more money. You can get advice from your local investors to find the best plan for you at the highest rates of interest.
Plan your savings for retirement early to get the best rates and investments advantages as possible. You and your family will benefit later in life.
About the Author
RateEmpire.com, http://www.RateEmpire.com an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com and search engine marketing website http://www.EnginePromoter.com
Saturday, January 6, 2007
Retirement Is A Scary Proposition If Youre Without A Plan, And Running Out Of Time
by Harald Anderson
This is a very serious problem in a country that we can all remember used to assure most people of a retirement where you are taken care of financially.
We all know that social security alone is not the answer to this problem. Many baby boomers are on the cusp of retirement without the ability to pay their basic living expenses with the money they will have coming in after retirement.
This means most will be looking for jobs to compensate, or they will be looking for extensions of their current jobs past the time they had hoped to retire and enjoy their lives comfortably.
Out of embarrassment, many people answer their friends by saying they wouldn't know what to do with themselves in retirement to justify why they are still working to make ends meet past retirement age.
If you are in the situation above or can picture that situation in the next 10 years, there is something you can do to change that financial prognosis.
First, look at your 401k. Calculate what you could expect at retirement if you could actively manage it up to 8% more in yearly compounded return.
Depending on when retirement is supposed to happen for you, what kind of nest egg does that leave you as opposed to depending on the return you are seeing now? Complete article...
Visit www.stock-trading-market.com for more advises.
This is a very serious problem in a country that we can all remember used to assure most people of a retirement where you are taken care of financially.
We all know that social security alone is not the answer to this problem. Many baby boomers are on the cusp of retirement without the ability to pay their basic living expenses with the money they will have coming in after retirement.
This means most will be looking for jobs to compensate, or they will be looking for extensions of their current jobs past the time they had hoped to retire and enjoy their lives comfortably.
Out of embarrassment, many people answer their friends by saying they wouldn't know what to do with themselves in retirement to justify why they are still working to make ends meet past retirement age.
If you are in the situation above or can picture that situation in the next 10 years, there is something you can do to change that financial prognosis.
First, look at your 401k. Calculate what you could expect at retirement if you could actively manage it up to 8% more in yearly compounded return.
Depending on when retirement is supposed to happen for you, what kind of nest egg does that leave you as opposed to depending on the return you are seeing now? Complete article...
Visit www.stock-trading-market.com for more advises.
Tuesday, January 2, 2007
Baby Boomers Will Drive Real Estate Growth by Real Estate Advisor
Baby boomers, baby boomers, baby boomers; we all hear this term over and over again. So who are the baby boomers? Baby boomers are people in the United States who were born between 1946 and 1964. Approximately 78.2 million people fall into this category.
As a group, baby boomers comprise the largest population cohort in the history of the United States. The size of the group gives it vast influence over American politics, popular cultural, and of course, real estate. To evaluate the influence of the baby boomers on the future of real estate, the National Association of Realtors (NAR) conducted a study in 2006. The findings of the research were published in report entitled Baby Boomers and Real Estate: Today and Tomorrow. Below are some highlights from the NAR study.
AGE DISTRBUTION
According to the NAR report, baby boomers now range in age from 42 to 60 years old. The typical baby boomer is 50 years old, and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old.
HOUSEHOLD INCOME
As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% them had a household income of at least $100,000 per year.
HOME OWNERSHIP
About 78% of baby boomers own a home, which is higher than the national ownership rate of 69%. About 96% of baby boomers believe that home ownership is a good financial investment.
FUTURE REAL ESTATE PURCHASES
About 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.
WHAT FEATURES ATTRACT BOOMERS
When baby boomers were asked about what features are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a body of water.
PREFERRED COMMUNITY AMENITIES
When baby boomers were asked about the type of community amenities that interest them most, about 18% wanted to be near cultural offerings, 9% wanted to be closer to their family, 4% wanted to be on a golf course, and 3% wanted easy access to educational facilities.
WHERE DO BOOMERS WANT TO RETIRE
When baby boomers were asked about where they want to retire, 33% of them want to retire in a rural area, 30% in a small town, 25% in a suburban area, and only 12% in an urban community.
BOOMERS AND THEIR REAL ESTATE AGENTS
Baby boomers consistently use the services of a real estate agent. Approximately 60% of homebuyers and 79% of home sellers used a real estate agent in their last transaction.
SUMMARY
The baby boomers have had and will continue to have a significant impact on the real estate market. As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments, and design strategies that target the needs of this enormous population cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow
As a group, baby boomers comprise the largest population cohort in the history of the United States. The size of the group gives it vast influence over American politics, popular cultural, and of course, real estate. To evaluate the influence of the baby boomers on the future of real estate, the National Association of Realtors (NAR) conducted a study in 2006. The findings of the research were published in report entitled Baby Boomers and Real Estate: Today and Tomorrow. Below are some highlights from the NAR study.
AGE DISTRBUTION
According to the NAR report, baby boomers now range in age from 42 to 60 years old. The typical baby boomer is 50 years old, and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old.
HOUSEHOLD INCOME
As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% them had a household income of at least $100,000 per year.
HOME OWNERSHIP
About 78% of baby boomers own a home, which is higher than the national ownership rate of 69%. About 96% of baby boomers believe that home ownership is a good financial investment.
FUTURE REAL ESTATE PURCHASES
About 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.
WHAT FEATURES ATTRACT BOOMERS
When baby boomers were asked about what features are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a body of water.
PREFERRED COMMUNITY AMENITIES
When baby boomers were asked about the type of community amenities that interest them most, about 18% wanted to be near cultural offerings, 9% wanted to be closer to their family, 4% wanted to be on a golf course, and 3% wanted easy access to educational facilities.
WHERE DO BOOMERS WANT TO RETIRE
When baby boomers were asked about where they want to retire, 33% of them want to retire in a rural area, 30% in a small town, 25% in a suburban area, and only 12% in an urban community.
BOOMERS AND THEIR REAL ESTATE AGENTS
Baby boomers consistently use the services of a real estate agent. Approximately 60% of homebuyers and 79% of home sellers used a real estate agent in their last transaction.
SUMMARY
The baby boomers have had and will continue to have a significant impact on the real estate market. As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments, and design strategies that target the needs of this enormous population cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow
Subscribe to:
Posts (Atom)