Why the condo hotel industry is booming...
1.) Demographics - 78 million US Baby Boomers that will retire
in the next 15 years (the largest population turned 50 in
2004-05, with 50th birthdays occurring every 7 seconds). The
under told statistic is that there will be 103 million Empty
Nesters in Europe by 2009 and Japan will have 32 million boomers
by 2010, in a total population of only 127 million people. 213
million Boomers will compete for a uniquely similar lifestyle in
retirement. 2.) Boomers Like Debt - Unlike the previous
generation, Boomers have proven that they are willing to pay,
and borrow for the lifestyle they want. The boomer generation
has innovated everything from disposable diapers to SUV's, they
will innovate the idea of retirement homes.
3.) The Wealth Transfer - Not everyone is going to get rich.
Boomers are estimated to get the biggest slice of the
inheritance pie: $17.8 trillion. Distributed evenly, each of the
78 million US boomers get $228,205. But these inheritance
dollars will not be distributed evenly. The 73.5% of the boomer
cohort will likely join the wealthier classes. Within the next
15 years, 20.7 million boomers will become over $658,000
wealthier, and 57.3 million people will get less than $72,900 to
boost their meager net worth/retirement. 20.7 million people may
be able to afford luxury retirement residences if they innovate
to fractional ownership, condo hotel, and private residence
clubs. Whole ownership is going to be bid farther out of reach
by the sheer mass of this population competing for prime
property, a trend that is already under way. Boomers will need
to get creative by purchasing a combination of a primary
residence, Condo Hotel and Fractional and PRC ownership options,
to more efficiently use their limited nest eggs and to have
active and dynamic golden years. www.vacation-finance.com
About the author:
Bob Waun , CEO
bwaun@vacation-finance.com
As a VP at Paramount Bank, and while at Wells Fargo, Bob
innovated lending for Condo Hotel projects. He holds a Master's
degree in finance/economics and BBA in finance from Walsh
College and a MI Real Estate Broker's License. He has personally
lent over $600+ million in residential loans, and over seen
operations lending $1+billion. He has been a professional guest
speaker and taught numerous courses/se
Written by: Bob Waun
|
