Real Estate Without Borders: Episode Summary

Episode Title: Top Countries for Retirement Revealed + The Great Wealth Transfer
Release Date: February 24, 2025
Host: Real Estate Without Borders

Introduction

In this compelling episode of Real Estate Without Borders, the hosts delve into the impending wealth transfer driven by the Baby Boomer generation and explore the top countries poised to become prime retirement destinations in 2024. The discussion is anchored around the significant real estate implications of Baby Boomers relocating internationally, seeking optimal environments for their golden years.

The Looming Wealth Transfer

The episode opens with a stark revelation about the largest wealth transfer in history. Baby Boomers are set to pass down an astonishing $84 trillion over the next two decades, with much of this wealth moving across international borders.

[00:00] Host A: "The greatest wealth transfer in human history is looming. Over the next two decades, Baby boomers... they're going to pass down an estimated $84 trillion."

Currently, Baby Boomers control approximately 44% of all real estate wealth in America, equating to around $17.7 trillion in real estate assets. As this generation ages, their decisions to downsize or relocate will significantly influence both domestic and global real estate markets.

[05:03] Host A: "This is probably the most important thing taking place in real estate in the world right now is what the Baby Boomers are going to do."

Top Retirement Destinations in 2024

The episode features a detailed analysis of the Top 25 Countries for Retirement in 2024, sourced from Natix's comprehensive Global Retirement Index. This ranking evaluates countries based on healthcare, quality of life, material well-being, and retirement finances.

1. Norway

Norway tops the list due to its robust healthcare system, high quality of life, economic stability, and political safety. Despite its high cost of living, Norway offers retirees peace of mind with its exceptional medical services.

[09:54] Host A: "Norway is widely regarded as an excellent place to retire due to a combination of economic, social, environmental and healthcare factors."

Challenges: High cost of real estate and cold climate.

2. Switzerland

Switzerland secures the second spot, maintaining high rankings across various categories. However, its real estate market is notably expensive, making it accessible primarily to wealthy retirees.

[11:23] Host B: "I thought Switzerland was the place to be financially."

Challenges: Unaffordable real estate prices for the average individual.

3. Iceland

Known for its stunning natural beauty and safety, Iceland offers a high quality of life. However, the harsh winters and high cost of living pose significant challenges.

[15:15] Host A: "Why would the average American retire in Iceland?"

Challenges: High living costs, limited daylight during winters, language barriers.

4. Ireland

Ireland ranks high in retirement finances thanks to its strong government indebtedness and favorable tax policies. Its vibrant culture and robust healthcare system make it an attractive destination.

[11:46] Host B: "Ireland's top ranking can be attributed to a significant jump in the government indebtedness sector along with strong performances in tax pressure, governance..."

Challenges: High real estate prices.

5. Luxembourg

A small yet affluent country, Luxembourg offers a high standard of living and robust healthcare. Its real estate market is premium, catering primarily to affluent retirees.

[17:03] Host B: "Luxembourg is the only one in the world today governed by a grand duke or a grand duchess."

Challenges: Extremely high property costs.

6. Australia

Australia stands out due to its superannuation pension fund system, offering financial stability for retirees. Its sunny climate and high quality of life attract many.

[07:03] Host B: "Australia's superannuation pension fund system... it's currently 3.5 trillion, the fifth largest in the world."

Challenges: High real estate prices and distance from other regions.

7. New Zealand

Similar to Australia, New Zealand offers a peaceful environment and excellent healthcare, though it shares the challenge of high living costs.

8. Germany

Germany's strong economy and healthcare system make it a viable option, though urban areas like Munich and Frankfurt are expensive.

9. Denmark & Austria

Both countries are praised for their quality of life and robust social systems, albeit with high real estate costs.

10. Canada

Canada offers a balanced mix of affordability and quality of life, especially outside major urban centers.

11. Finland & Sweden

Known for their excellent healthcare and beautiful landscapes, these countries also present high living costs and cold climates.

12. Slovenia

Slovenia emerges as an affordable European destination with lower living costs and stunning natural beauty.

[25:05] Host B: "Significantly lower cost compared to the U.S. according to Numbeo, consumer prices in the U.S. are about 20% higher and rent is roughly 117% higher."

Challenges: Sudden price inflation post-COVID and language barriers.

13. United Kingdom & Israel

The UK faces economic challenges similar to Germany, while Israel offers a rich culture and strong healthcare but at a high cost.

14. Czech Republic, Belgium, & South Korea

These countries provide varied benefits, from lower living costs to efficient healthcare systems. South Korea, in particular, offers low living costs outside Seoul but grapples with an aging population.

15. Malta, France, Japan, & Estonia

Malta attracts with its Mediterranean climate and English proficiency, France with its lifestyle, Japan with its unique culture, and Estonia as an emerging market, though language and high property prices are hurdles.

[34:35] Host B: "In Estonia, the official primary language spoken is Estonian and Estonian is a Finnic language..."

Real Estate Implications

The hosts discuss how Baby Boomers' substantial real estate holdings will influence international markets. As Boomers relocate, both property values and rental yields in these top retirement destinations are expected to fluctuate.

[34:11] Host B: "Israel, Switzerland, Czech Republic, Hong Kong... these countries where your house prices are high, a lot of people want to buy the real estate. They don't perform well as investments."

High property prices in top-ranked countries may deter average retirees but attract affluent investors seeking stability and quality.

Challenges in International Retirement Relocation

While the allure of high-quality healthcare, safety, and stunning environments attracts retirees to these countries, several challenges persist:

• Cost of Living: Many top destinations have prohibitively high living and real estate costs.
• Climate: Harsh winters and limited daylight in countries like Iceland and Norway may deter some.
• Language Barriers: Countries like Estonia require language acquisition, posing a significant hurdle.
• Economic Stability: Countries facing economic downturns or demographic shifts, such as South Korea and Japan, present sustainability concerns.

[31:33] Host B: "If you can afford to go and choose a country based on where you want to retire, you probably healthcare you can afford to pay for."

Conclusion

The episode underscores the significant impact of Baby Boomers' wealth transfer on international real estate markets. As this generation seeks optimal retirement destinations, both domestic and global real estate landscapes will undergo substantial changes. The hosts emphasize the importance of understanding these trends for investors and retirees alike.

[35:32] Host B: "I learned a lot, man. I learned... I think we covered some really cool things. I think it's just here to provide value. We're value givers here on this podcast, and that's what we did today."

[35:09] Host A: "My major takeaway is a bunch of countries that nobody can afford as it stands, are attractive to old people who have a bunch of money."

Notable Quotes

• [00:00] Host A: "The greatest wealth transfer in human history is looming. Over the next two decades, Baby boomers... passing down an estimated $84 trillion."

• [05:03] Host A: "This is probably the most important thing taking place in real estate in the world right now is what the Baby Boomers are going to do."

• [09:54] Host A: "Norway is widely regarded as an excellent place to retire due to a combination of economic, social, environmental and healthcare factors."

• [11:23] Host B: "I thought Switzerland was the place to be financially."

• [15:15] Host A: "Why would the average American retire in Iceland?"

• [25:05] Host B: "Significantly lower cost compared to the U.S. according to Numbeo, consumer prices in the U.S. are about 20% higher and rent is roughly 117% higher."

• [34:35] Host B: "In Estonia, the official primary language spoken is Estonian and Estonian is a Finnic language..."

• [35:09] Host A: "My major takeaway is a bunch of countries that nobody can afford as it stands, are attractive to old people who have a bunch of money."

• [35:32] Host B: "I learned a lot, man. I learned... I think we covered some really cool things. I think it's just here to provide value. We're value givers here on this podcast, and that's what we did today."

This episode provides invaluable insights into the intersection of generational wealth transfer and international real estate investment, making it essential listening for investors and retirees navigating the evolving global property landscape.