All Forum Posts by: Roman Rosario

Yes, that's definitely too big a house for an empty nester! We leased out huge house out when our adult kids all moved to so Cal, and followed them! We had a 4600 s.f. house, 2100 s.f. guest house on 20 acres! Though I miss it terribly, there's a much better market here, and friends of ours leased it, so that's a bonus.

We like commercial because buyers do things more on the numbers, less emotional drama. Though, we do build residential sometimes.

We are in the process of putting together a deal in Fullerton, CA, it's a 10,500 sq. ft. +/- medical office building. The only vacant lot that was for sale in the area. It's designed to be sold as an entire building, or condos (allowing smaller investors). The entire building will sell for around $5 million.

How's the market in Davis? What type of properties do you like?

As a Boomer myself, a developer, and a real estate agent, I know that what was once thought would happen with the Boomers has changed dramatically, and there's no way to know the extent of the damage.

Many boomers (and others) had depended on their homes appreciating in value, and thought they would be able to sell their homes; and relocate to a new area where living was less expensive for retirement, paying off their new homes with cash. We lived in one of those areas that drew the boomers from southern California that wanted to escape the rat race, and in fact were in the middle of building out a residential subdivision. When the market crashed, the entire area we lived in died. Unemployment skyrocketed, as the area was heavily dependent upon construction, and perfect for retirement (lakes, rivers, caverns, volcanoes, it's beautiful) The buyers of new homes were gone within weeks. All the equity they were depending on to relocate disappeared, as did their retirement plans.

Another scenario is those that refinanced their homes, once again depending on appreciation, and now have over financed homes that are under water.

I think in the areas where the economy is still good, many that planned to retire will retire later. Many of those that planned to move will instead move into smaller homes or condos, or possibly rent apartments.

In the areas where values fell, and the economy hasn't come back, there are many boomers that have lost their homes, renting apartments, and working in service industry jobs if they're lucky.

So in answer to the question, it's anyone's guess. We've never seen this situation before, and we'll learn as it unfolds. One thing is certain, the Boomers will get sick, have hip and knee replacements, need rehab, or work on staying healthy, causing all the businesses in those areas to prosper, and that's one reason why we are focusing on medical office space. It's a growing niche.

I'm with Bill; although, conventional thinking may be wishful thinking.

Baby Boomers have been a topic of discussion and study for many, many years.. As we reach retirement age, we supposedly impact healthcare, housing, budget deficits, the stock market, consumerism, political decisions, etc. As a major demographic, the impact may be become negative.

The growing popularity of reverse mortgages is a sign that a lot of boomers weren't saving or planning for their "golden years."

I'm not one for generalities. I made my living out of servicing investors in real estate. I've watched millionaires created and watched some of them become broke.

I went to a symposium some 6 or 7 years ago and the keynote speaker was projecting that the baby boomers would drive the stock market over 20,000 by now as every boomer would be investing their money for retirement into the stock market.

The Fed isn't helping. Taxes are going up, along with capital gains; and returns in money markets, stocks, bonds aren't stellar.

My recommendation is to study the down and up cycles in real estate. If you know a good geographer, you might be able to get ahead of the curve.