Two years ago Warren Buffett advised baby boomers to buy their retirement homes “now”, while prices and interest rates were low. More importantly, competition for retirement homes in the sunbelt states would become fierce as more boomers entered retirement age.
It’s now two years later, and prices in our Key West market have seen double dig
it percentage increases (24% increase in 2013 and it appears we will end 2014 with a similar increase). Buffett’s advice was clearly dead on, and just as valuable today while interest rates are still low.
Boomers are due to inherit the largest transfer of wealth that has ever occurred in this country as their parents pass away. They will be spending “found” money and largely paying cash! Tough competition in any market!
Click here for Buffet’s 2012 Forbes piece.