In this blog post we discuss the idea that you should buy for enjoyment and not just for profit. Read on Annabel Gorringe's expert tips and advice...
Annabel Gorringe - Lead Analyst - Financial Services Consumer Insight - Datamonitor.
Property should be bought for the enjoyment that is drawn from it as well as the profit that is made
For years the appeal of rising house prices, coupled with the very British desire for "bricks-and-mortar" blinkered consumers to potential risks. Particularly for people nearing retirement, having all their eggs-in-one-basket has left many in serious financial straights. The mantra of "my home is my pension" had become the acceptable way to save but this left many with little to fall back on when prices collapsed. A poll by Scottish Widows found that a third of retired people in the UK are in the red on loans and credit cards, while their outstanding mortgage debt has also grown. The problem faced by many nearing retirement is that they are overstretched on property at a time of life when they either want or need to sell.
Will this teach a lesson to young people about investing in a range of assets, not just property? It seems unlikely. The lure of making money from your home remains and many shrewd property investors have been able to weather the storm. Unless you are an investor who can afford to take risks, property should be bought for the enjoyment that is drawn from it as well as the profit that is made. A house is a home as well as an investment.