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.
- Is an Irish economic miracle in progress?
- Is the UK seeing a pre-election stimulus rather than more austerity?
- The Royal Mint launches bullion trading service
- Tesco shares plummet as supermarket reveals it overshot profit forecast by £250m
- UK Bank Return - BoE now least open of major CBs
- The UK’s top 25 money saving tips are...
- Savers gearing up for the brave new world of pensions - and many might even save more
- Mindful Money's weekly share watch: Carnival & United Utilities
- Cost of the average flat up by more than £50,000 over the past 10 years
- Research shows record number of people now plan to use property to fund their retirement