Property investment for retirees is not a sure bet

Baby boomers have been the major beneficiaries of rising housing prices over the decades. That does not necessarily mean it’s a good investment decision for them to buy residential property as they near or begin retirement.

With property prices skyrocketing in major cities, many early retirees or those nearing retirement might be considering investing in retail property.

It’s an asset class they not only understand but as baby boomers have greatly benefited from, with property analyst CoreLogic estimating national housing values rose 382 per cent over the past 30 years to July 2022. In compounding terms, that’s 5.4 per cent a year.

Considering many retirees, or those about to retire, have been in the residential market even longer than this 30-year timespan, that capital gain seemingly makes a compelling argument to invest in housing.