Who is Going to Buy the Big House When We Want To Sell?
A couple of weeks ago, we had a client meeting at Reynolds Plantation, in Greensboro, Georgia. This is a golf resort community with 7 premier golf courses, club houses and a variety of home types, both big, large and fancy, as well as simple cottages.
We stayed in one of the cottages– we were only there for a couple of nights. The cottage that we stayed in was nice, about 2800 square feet, 4 bedrooms, 4 bathrooms, etc. However, this was small in comparison to some of the large luxury homes we observed around the golf courses which we played.
A question of interest arose when one of the members in our golf team made the observation, “Who is going to buy these houses when the owners decide to sell?” Now, that is a question that may not have been raised before, however, in today’s environment, is worthy of debate.
What we learned was that the majority of folks that reside at Reynolds are retired and these houses, for many, are second homes. No problems there, however, the question still remains, who will buy these houses when the current owner decides to sell.
What we are seeing in the marketplace today is a generational shift in attitudes and desires of Generation Y and Millennial age individuals. Golf is NOT a sport that many Gen Y and Millennial age individuals are interested in. Why not? Takes too much time away from the family, not fun to be gone for 5 hours, etc. Interestingly, golf courses have closed in the past several years– in fact, more have closed and been turned into residential development than new courses that have been built.
Visiting with a prominent community member who is in the investment business and having this discussion, he made an astute observation. He said, “I have 2 houses valued at $250,000 each. I could afford much more house, however, if I want to move, retire early, etc, I can sell a $250,000 house. I am not sure if I could sell a $450,000 house.”
This was a key factor to consider– in our minds. No, you will not be keeping up with the Joneses in this scenario. However, you will have the ability to “make something happen” if and when you want to make a change. Kind of an interesting thought to ponder– “Who Will Buy the Big House When We Want to Sell?