The importance of being 43 - Bernard Salt

I've pinched this from another forum which pinched it from the Australian today. It was an interesting read re the types of property likely to be in demand over the next 5 years in particular and who will be driving this growth in demand.


***********************************************************************************************************
Millennials to drive property demand in immediate future | The Australian (paywall)

The importance of being 43
In the next five years home upgrades are poised to surge.
By BERNARD SALT

In the immediate future, demand for residential property is likely to be driven by millennials.

For more than a quarter of a century a single driving force has shaped demand within Australia’s residential property market.

Inner city primacy

From the aftermath of the last recession (say, 1993) through to the coming of the coronavirus (2020) Australia’s biggest cities, and some smaller cities too, evolved around a single unshakeable principle.

And that was that 20-somethings would gravitate from the suburbs and the regions to the city creating a distinctive inner-city community that would eventually be known as knowledge workers and/or as hipsters.

...​

 

Bernard is a smart guy

 

Hmmm. I’m an 1983-er and in 5 years I’ll be about ready to downsize

 

The generation following - Gen z - is much smaller. I suspect they'll still gravitate towards inner city areas for lifestyle but there just won't be as many of them.

 

Interesting he mentions Taylor’s Hill, Caroline Springs, Cheltenham as 'upgrader' suburb for people in their 40s. I would've though they'd be more bluechip suburbs in the East?

He even mentioned considerations as their kids enter their teenage years. Shouldn't this be underpinned by a movement to the East where all the good high schools are?

 

these ppl are all over Camp Hill already. 38 going on 43.

After this move to suburbs will be a reduction in population, and the boom will be in cemeteries as baby boomers need to be buried (standing up?).

Buy a cemetery

 

Every Boomer I know has a new Ford Ranger and a big comfy caravan. None of this cemetery stuff - It will be a campfire along the banks of an outback river and ashes blowing in the wind.

 

What if there is capital gain in grave spots?

I can see boomers buying several, and potentially leasing them out

 

What's the Tax ruling?

 

I did track the price of a piece of 4 by 6 land, it has increased in price. I regret not buying ahead. But then the late boomers might not want to be "buried". I have a friend told me he wouldn't like to be left derelict like those in the old cemi.

 

Do they want to be frozen, to be brought back when technology cures old age?

 

No, if you run out of money to pay for the electricity, you will be left rotten... Yuck... Best to be burnt and scattered. You are always part of the pollution, someone might even "dust you off"