Investing in Retirees

July 17th, 2013 by The JetSetter Team | 1 Comment »

retirementThe over-65 crowd may be the most overlooked investment demographic in real estate. Baby boomers are retiring at increasing rates and looking to relocate. Smart investors will surely want to take advantage of this opportunity.

It is important to look for two main aspects when choosing to invest. The first is the migration of retirees. Baby boomers want to be around others in a similar life stage. The second aspect is potential growth. In other words, try to meet the market where it is low and on the upswing. The ability to leverage the market’s movements in your favor is crucial to accumulating wealth.

There are several cities that meet this criteria – that is, places where seniors are congregating that also show positive capitalization rates. Investing in these areas will see quick returns. However, some different matters – things that retirees view as important – must be taken into consideration.

Cost of living is important to seniors. Many live on fixed incomes and desire locations that will not quickly drain their retirement fund. The weather – presumably, sun and warmth – can also be important.

There are, of course, several locations in Florida with reasonable investment opportunities. Arizona and California also top the list. Yet, if you are looking for someplace unconventional to invest in do not fret – you have options.

Retirement is not all about the beaches anymore. Mountainous regions such as Arkansas, Oregon and Pennsylvania are experience booms in baby boomers, as well. Upstate New York is another possibility.

It should be restated here that these are just places where the strongest potential for investment growth exists. Retirees are gathering in many other places where possible returns are low, such as the Dakotas, the Virginias, and the Deep South.

What we are talking about here is a virtually untapped market in real estate. The elderly are moving in great numbers to places that have a lot of potential to grow over the next several years. This market will see easy investments and quick returns if the research is done first.

This is right in line with Jason Hartman’s philosophy. Investing in real estate does not have to be tricky. It simply requires knowing the when and where of potential capitalization. Investing in these areas will result in a passive income that will free you up for more investment research. Or, if you are doing well, you could always travel to exotic locations. (Photo Flickr | 401(K) 2013)

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