Older Generation Is Bidding As Pensions Crisis Continues - 24/08/10
Since the recession and with low savings rates and the pension crisis, people have become keen to put their money elsewhere. Property investment has become an increasingly popular trend for mature investors who range from those entering retirement to people in their seventies.
Last month, residential property auctions across the UK raised £212.6 million, 29.3 per cent more than the £164.4 million achieved in May 2009.**
Chris Baguley, director of lending specialist Auction Finance Limited said:"We've noticed mature bidders, who had never entered the auction room before starting to appear in greater volumes. "People like bricks and mortar because it's more tangible than a pension. It makes sense – you know where your money is and you can get capital appreciation.
"Many people make the assumption retired people only purchase a property if they are looking to downsize. This is simply not the case. The older generation is becoming increasingly involved in the housing market - they are savvy, they want to keep their money safe and many view buying a property to renovate as an exciting project."
Clive Emson Land and Property Auctioneers says some buyers aren't just settling for one purchase but are returning to buy more, having realised the benefits.
James Emson, auctioneer at Clive Emson said:
"Mature buyers are investing in all types of property. Some favour the security of commercial properties for guaranteed rent. Others prefer properties local to where they live.
"The more adventurous buyers are generally those just entering the 'mature buyer' bracket – they like the idea of taking on a property that needs work – they see it as a project to get stuck into. Other people just want a safe haven for their money."
** Essential Information Group
