In the coming years, thousands of homes belonging to the baby boomer generation are expected to become vacant. However, the transfer of these homes to the next generation is unlikely to happen as quickly as many hope. Switzerland, one of the wealthiest countries in the world, has a low home ownership rate compared to other European nations and the United States. The ownership rate is at 36 percent, making it difficult for Swiss real estate agents and buyers to purchase properties.
As the baby boomer generation ages, many are hesitant to sell or move out of their homes due to various reasons. Moving can be stressful for aging individuals who prefer to grow old in their own homes. Additionally, financially, they might have already paid off their mortgages or be paying significantly lower amounts than new rental rates. As a result, many owners still hope to keep their property within the family or pass it on through inheritance.
Studies predict that as the baby boomer generation continues to age, the number of homes being inherited or sold will increase significantly. However, factors such as net immigration rates also affect real estate markets and may cause some softening in demand and prices. Despite this prediction, experts recommend that those planning to buy or sell property should consider factors such as densification strategies and interest rate developments before making any decisions about their real estate investments in old age.
In conclusion, while there may be some challenges in transferring ownership of baby boomer-owned properties in Switzerland and other countries with similar issues, careful consideration must be given before making any real estate investment decisions in old age.
