Over-55s want to downsize but worry about moving costs
Research undertaken on behalf of Keymove Property Services shows around one in five (18%) of over-55s plans to downsize in the next five years to raise money.
They aim to raise an average of £78,000 from moving to less expensive homes – the equivalent of around £78 billion – with around a quarter (24%) planning to give money to children to pay for house deposits and other spending. Around 23% are downsizing because of financial worries – 19% say running costs of their home are too high while 1% cannot afford their mortgages and 3% have interest-only mortgages with no ability to repay the loan on maturity.
However just 22% of over-55 homeowners are unconcerned about the house buying and selling process. This leaves 78% who are concerned or worried. The hassle of moving home is the biggest worry for 60% while 49% are concerned about the expense. A third (34%) is worried about delays in the house sale process while 27% are worried about negotiating their sale price.
There are apparently real fears about moving house and the problems involved which is not surprising considering many older people will not have moved for years. The risks of getting it wrong or losing money are real too as it is a decision they will literally have to live with.
At Hudson Property, we regularly advise this age group not only about their own property but also about the different kinds of properties available for them to down-size to, as well as the financial implications for them. Furthermore, they often rely on us to hand-hold them through the selling and buying process simply because it can be a frightening and worrying time, and they know we will give them honest (and free) advice, that will sometimes result in them staying put for the time being, if that is in their best interests. For further assistance, do please pop in to see us in Hessle or call us on 01482 645100.
Source: financialreporter.co.uk, 29th April 2013