Realistic homeowners debunk the nest egg myth
- 13 October 2010
Research by Schroders found that almost 60% of homeowners are realistic about their property's growth potential and no longer see climbing the property ladder as the way to build wealth.
Robin Stoakley, Managing Director, Schroders UK Intermediary Business says: "This research shows the first signs that UK homeowners are beginning to accept that their property may not deliver the capital nest-egg they had previously assumed.
"While this is a painful realisation, if it encourages people to diversify their investments across a wider group of assets, then they should be in a stronger position come retirement."
A new investment environment
Just 9% of homeowners say they intend to upsize and move to a larger house in the future, with just 6% of these people saying their move up the property ladder is primarily driven by a belief that it will be a good investment.
More than half (59%) of homeowners say they intend staying in their existing home or, when they move, buying a similarly priced property.
While 21% of homeowners say they would consider downsizing in the future, just a fifth of these people are doing so in the hope of releasing equity, with the rest planning to drop down the property ladder to find smaller, more manageable homes to meet changing lifestyle needs.
- More than half a million over-40s plan to use their pension to repay their mortgage
- Global stock market crash is “timely” for long-term investors and the economy claims financial adviser
- Why you should invest in emerging markets now
- Will you still need to carry cash in five years' time?
- Market turmoil: what the savvy investors are buying
- Aberdeen targets diversification with new fund launch
- Local authorities instructed bailiffs to collect debts on 2.1m occasions last year
- US economy grew by far more than initially thought in the second quarter, official numbers show
- How much will it cost to send your children back to school?
- Thousands of HSBC customers left without cash for bank holiday after payment system failure