As I have mentioned before my rationale here is one, I expect property to average no growth in real terms til 2030, meaning still keeping up with wages growth and inflation, which would still see a 1 mil prop be worth 1.8 by 2030, but be worth no more in real terms than 1 mil today. I woudl expect troughs and peaks over this time as well, with a trough or sideways movement happening um right about now for one.
My parents were born in 1943, just outside the boomer range, and they have a reasonable amount of super, but wanted to one, not have to look after two houses, so the holiday house goes, plus they have retired up near the holiday house anyway.
Baby boomers born between 1946 and 1956 will be retiring if you take the age 65, between 2011 to 2021, and for 1965, its 2030.
The BB between 1956 and 1965 own a lot more investment props than 1946 to 1956. I read in one report the split is 80/20 although those charts we saw show a bit less of a difference.
I also read BB super is woeful at around $111,000 on average.
In any case, as Free Will mentions, the average BB will probably not have a rental income large enough or even be bothered with trying to manage properties, which can be time consuming and tedious in retirement.
As the article discusses, just as they helped cause the boom, they will help unwind it IMO.
This IMO will make negative gearing and holding on for cap gains a futile excercise in the next few years. Buying opportunities may come after that if timing is right for the finding the bottom of the cycle. Hey I may even buy an investment property myself in a few years if I back my own theory.
