Front line Baby Boomers must be getting tired of the bombardment of not so subtle reminders that they are edging ever closer to their
Looking to the future of real estate and how the market will evolve based on demographics and population forecasts - then pro actively positioning yourself for these changes is how some will manage to come out far ahead of others who pay no attention. I came to a realization I must share with you. It is simple yet sound financial reasoning, and those who act will profit by and be grateful for this advice.
At some point in life after the kids have moved out into the world many home owners find stairs becoming more difficult to handle and the desire for a one level lifestyle is more predominate. Statistically that is the point when most make the decision to sell the 3-4 bdrm two story home often to move to a condo or bungalow. That shift is taking place right now at greater numbers than any point in history across North America.
Based on housing demand forecasts, over the next 10 years a bungalow in Ontario (and your market too no doubt) is likely to appreciate as much as 30% to 50% beyond what a two story home equal to it in price today will appreciate over that same time frame, This is the direct result of increasing demands for single level housing, demands that out strip supply. If your scenario fits, apply the appropriate math using your current property value to see what this could mean in potential dollars to you.
Those who have the foresight will sell the two story home and buy the inevitable bungalow now at today's prices. That amount of increase we spoke of over 10 years is then equity earned by you over that time time rather than becoming the additional amount needed to buy later. Money that would likely be taken from your life savings or by borrowing at a time when most are hoping to have more disposable income.
Demand for bungalows is only going to increase as the Boomer generation advances on. Something to think about.
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