The Great Wealth Transfer: How Many Millennials Will Get Rich?
The Great Wealth Transfer: How Many Millennials Will Get Rich? Sun, May 26, 2024, 3:00 PM CDT 2 min read ¹WealthEngine, "The 2019 Millennial Wealth Report." The Great Wealth Transfer — wealth transferred from boomers to younger generations such as millennials — through 2045 will total $84.4 trillion, according to a Cerulli report. A whopping $72.6 trillion in assets will be transferred to heirs, while $11.9 trillion will be donated to charitable organizations. Other estimates place this transfer at as high as $140 trillion, “marking one of the most significant wealth transfers in history,” according to CFAAC. And one generation is set to significantly benefit from this transfer of wealth. Millennials Are Projected To Inherit a Great Deal of Wealth. By 2030, millennials will hold five times as much wealth as they have today — and are “expected to inherit more than $68 trillion from their predecessors in the Great Transfer of Wealth” — according to a Coldwell Banker report. “There is already a large and growing population of millennial millionaires, and there will be even more created over the next decade according to projections,” Craig Hogan, vice president of luxury for Coldwell Banker Real Estate, said in the report. “The big question is, ‘What will this generation do with their wealth when the Great Wealth Transfer takes place?" Indeed, the report noted that (as of 2019) that there are 618,000 millennial millionaires, accounting for 2% of the total U.S. millionaire population and 0.2% of the general U.S. population. That number is almost certainly higher today. Further, millennials and Gen Zers expect to inherit $320,000 on average, according to a USA Today survey, while 15% expect amounts of more than $500,000 and 6% expect upward of $1 million. This story was published on May 26th, 2024 at Yahoo Finance
Hot Trends in Second Home & Vacation Property Markets
Hot Trends in Second Home & Vacation Property Markets The real estate market is dynamic, with significant growth observed in second homes and vacation properties. These properties, ranging from beachfront condos to mountain retreats, provide escapes and lasting memories as well as lucrative returns on the investment. Increased Demand for Vacation Properties: Demand for vacation properties has surged as individuals seek reprieve from daily routines. Factors like personal enjoyment, rental income potential, and long-term investment value drive this demand, especially in areas with strong tourism industries such as Puerto Vallarta. A review of many Facebook posts will quickly reveal a popular topic of discussion; the long wait times to get Mexican residency at all the Mexican consulates across Canada and the US. The Baby Boomers and the GenX folks are retiring or retiring early, and they are looking to get that second home in paradise. Emphasis on Location and Amenities: Location plays a crucial role, with buyers seeking proximity to popular destinations and attractions. Properties offering unique features like private pools or scenic views attract higher interest and command premium prices. Growth of Short-Term Rental Market Platforms like Airbnb have transformed the vacation rental market. Many buyers purchase second homes for rental income, benefiting from short-term rentals to offset costs and generate profit. While many cities have recently implemented various restrictions on short term rentals, Puerto Vallarta has no such restrictions. PV is a perfect example where the short-term rental market is a huge driver of the local economy and there are not likely to be any restrictions implemented. Remote Work and Lifestyle Changes: The pandemic accelerated remote work trends, increasing the appeal of second homes. Buyers prioritize properties offering work-life balance, outdoor access, and scenic surroundings. Once again, PV comes out on top here as high-speed internet is abundant ad cheap. The fact that the airport has many direct flights to cities across Canada and the US also makes it popular for those who need to occasionally return to the head office or to attend client meetings in the US or Canada. Financial Considerations and Investment Potential: Buyers must consider ongoing costs beyond the purchase price, evaluating factors like property taxes, insurance, and potential rental income. Historical appreciation rates and future development potential are also crucial. PV checks all the boxes in this category with a 60% increase in average condo prices in the last 5 years. PV homeowners also enjoy an incredibly low 0.086% tax rate. The popularity of PV as a vacation destination has also driven up rental demand as well as per night rental rates, making ownership for the sake of rental income very attractive. Sustainability and Eco-Friendly Features: Features like energy-efficient construction and renewable energy systems enhance appeal and long-term value. Eco smart construction techniques are starting to be a part of most new developments in PV. In conclusion, the market for second homes and vacation properties is experiencing notable growth and evolving trends. The increased demand, emphasis on location and amenities, growth of the short-term rental market, remote work opportunities, financial considerations, and sustainability features are all key factors shaping this niche market. increasingly prioritize eco-friendly properties. conclusion, the market for second homes and vacation properties is thriving, driven by various factors. This story and more are courtesy of our partner @NikValcic
Real Estate: Navigating the Evolving Market Landscape
Real Estate: Navigating the Evolving Market Landscape As we close the first quarter of 2024, the real estate market is undergoing a significant transformation, setting the stage for what lies ahead. Speculations about the impact of rising mortgage interest rates on housing prices have been abundant. While prices remain high, they are beginning to stabilize in many areas, accompanied by a dwindling inventory of desirable properties. This shift presents both challenges and opportunities for buyers and sellers alike in Chicago and our surrounding suburban markets. Navigating this new market landscape requires careful consideration and strategic decision-making. What was once a predominantly sellers' market is now showing signs of transitioning to a more balanced state, with properties taking longer to sell and fewer commanding full-price contracts within the initial weeks of listing. For many homeowners, particularly those contemplating moving up in the market, the uncertainty has led to a cautious approach, with some opting to leverage Home Equity Line of Credit (HELOC) options to enhance their current residences instead. The need to improve the home to sell was part of the plan anyway, right? Changing Demographics at Play The influence of demographics cannot be understated, with baby boomers continuing to exert a significant influence on the market dynamics. Boomers are already a major part of the market and will have an expected and continued impact across the country. Simultaneously, a new trend is emerging, as individuals explore alternative paths to homeownership, such as purchasing properties with friends to share mortgage responsibilities. This innovative approach reflects the evolving nature of homeownership amidst soaring property prices. Splitting the mortgage is one way for Chicagoans to become homeowners in this pricey housing market. Roughly half of Americans are willing to split the bill on buying a home in less traditional ways, Axios' Shauneen Miranda writes. Recent reports now claim that low mortgage rates have made their way to the table in divorce disputes. Who will keep it is now a new hurdle to overcome. Need vs Want The real estate market in Chicago is a dynamic ecosystem, characterized by a blend of necessity and aspiration. Relocations, driven by employment opportunities or lifestyle preferences, continue to play a pivotal role in shaping market dynamics. However, factors such as inventory levels and the proliferation of luxury rental developments introduce new dimensions to the market equation, further complicating forecasts and strategies. Forecasting is Tough The current state of the housing market or crisis, as some call it, is certainly one of the most relevant topics in America today. Discussions on prices, interest rates, availability, market conditions always seem to dominate the news and conversation with our friends and family. One prediction according to Meredith Whitney Is that home prices are likely to go down. But it's due to something altogether different. Whitney predicts that there is an even bigger demand supply imbalance. And it's going to invert. New household formation is at one of the lowest points ever. If she is correct, we have yet another priced correction heading our way. Forecasting in such a volatile environment poses its challenges, with experts offering divergent perspectives on future trends. Meredith Whitney's prediction of a potential downturn, attributed to demographic shifts and changing household formation patterns, adds another layer of complexity to the forecast. Amidst the uncertainty, one certainty prevails: the market will adapt and evolve. While the industry may be inundated with conjecture and speculation, the resilience of the market underscores its ability to weather storms and emerge stronger. In navigating this beauty contest with its price struggles and inventory challenges, having a trusted advisor and a well-crafted plan is paramount. As the market continues its journey, it is essential to remain agile, informed, and prepared to seize opportunities amidst the uncertainty. The outlook for the market remains intricately tied to external factors, notably interest rate fluctuations. While significant changes are unlikely without adjustments to interest rates, the market's resilience in the face of uncertainty is evident. Amidst the challenges, there is a palpable sense of anticipation and determination to navigate the evolving landscape. Like most journeys, this one is best with someone who knows the lay of the land. If you are looking for less noise and opinions based on facts and data then we may be a good fit. We are happy to join you on this very important part of your journey.
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