the Laughing Boomer

World Wide Real Estate Markets

With real estate around the world increasing in value, baby boomers are changing homes: trading up, trading down and moving countries.

Diverse trends have developed with respect to boomers and their real estate. One trend is that people sell their city home, which has increased in value sometimes by thousands of dollars, and buy farther out. Many boomers in their forties and fifties trade up to gorgeous homes with trophy kitchens, lots of space, and opportunities to spend, spend, spend on decorating their new digs.

Even though they move to comparable or even bigger homes in outlying or rural communities, they still pocket one or two hundred thousand dollars. Their lives have been transformed with a paid-for, beautifully decorated home and cash in the bank.

Another trend features the minimalist approach. These folks buy tiny condominiums. High-end, sleek and efficient, these pads require fewer furnishings because of the small square footage. With little furniture to buy, the chosen pieces can be exquisite. Although some condominiums in desirable urban areas may be just as expensive as single family homes, usually the trade affords some savings. These people gain a new urban lifestyle, much less housework, and lock-and-go opportunities.

Still others opt for a scale-down approach. As they no longer need or want the room, some folks redeploy to condominiums or townhouses, in their same neighborhoods or close-by communities. They simplify for various reasons. Some live a dual or even triple existence. At various times during the year they live in their tiny urban apartment, at their rustic cabin by a stream, or on their boat. Others put their worldly possessions in storage and travel for several months. They volunteer in third-world countries or elect for a life of less materiality.

Yet another trend? Rather than just stay their geographic zone, many move across the country or to other countries.

Forgive me if I am worried that British Columbia might sink into the ocean if all the baby-boomers in Canada get sick of the endless winters elsewhere and transfer here. The milder climate areas in BC, such as Vancouver and Victoria, receive a continuous flow of retired folks from the rest of Canada. With only 30 inches of rain per year, communities like White Rock boast some of the highest real estate values in BC. But, although BC weather may be the best in Canada, it still rains a lot!

Relative wealth has spawned international travel, and once travelers get a chance to experience another lifestyle and compare costs, they elect to move on and move out.

People travel worldwide, pick a place to live based on their needs, and relocate.

Although Canada is huge, much of the north is cold. Most Canadians live within three hundred miles of the border. Americans have more warm-weather choices. Warmth is the reason millions of west coast Canadians fly south to California, Arizona, Mexico or Hawaii, and east coasters fly to Florida, the Caribbean and Mexico. Snowbirds from Canada comprise a large part of the southern US economy.

For example, Florida had 76.8 million visitors in 2004. Jerry M. Ray, in EconSouth said that 1000 people per day move to that sunny state. In Floridian terms, the folks are called "splitters" - boomers who spend about ten years with two homes. These folks continue their final working years in their "old" city, but purchase in Florida, where they eventually retire. Florida has the additional bonus of low taxes. It ranks 45 of 50 states with respect to tax-loads, which increases net after-tax income.

Others simply relocate out of the country. Canadians can not easily emigrate to America, which they do primarily for the sun. Neither can Americans painlessly emigrate to Canada, which they often desire to do because of the medical system. However, other countries gladly accept retirees.

Several documents published by the U.S. Department of State say that, "More than 500,000 Americans currently reside in Mexico". Similar statistics about Canadians are not readily available, but anecdotal evidence would suggest they number in the thousands. According to PV Mirror, 900,000 Canadians visited Mexico in 2005. Many stay.

Another country which accepts retirees is Panama. Approximately 60,000 Americans and several thousand Canadians reside there. Its famed "Pensionado" program only requires proof of $600 per month income for a couple. Many take the plunge.

This is not just a North American phenomenon. Apparently about 1.2 million British live abroad. It is estimated that 100,000 British will move to Spain in 2007. Germans transfer to Portugal; people relocate to France, as it is quite reasonable outside of Paris. Fueled by the low-cost airlines such as Ryanair that offer travel for one or two pounds, people discover cheaper and lovelier places to live.

Sociovision.com states that "28% of the population of the older European Union countries are baby boomers." People within the EU can live in any of the other EU nations. This basic idea is that individuals within the EU can live and work anywhere might have been restrictive for employment because of language barriers. However, this union means that early retired baby boomers within the European Union have the best of all worlds: a warm place to live and money to spend.

Mahara Sinclaire, M.Ed.
© Mahara Sinclaire, 2007
mahara@laughingboomer.com
877 words

Mahara Sinclaire, M. Ed., the Boomer Expert, is the author of the book The Laughing Boomer, due out in 2007 and the Laughing Boomer Workbook: Retire from Work, Gear up for Living. She has presented hundreds of workshops on a variety of topics, writes syndicated columns and presents workshops on retirement planning. Mahara is known for inspiring clients to move forward with their lives. She can be reached by telephone at 604 324 1054, mahara@laughingboomer.com or www.laughingboomer.com.