Research by the Abbey has shown that more than 70% of people are relying too heavily on their homes as an investment for old age. Lower income homeowners are more likely to rely on their properties than middle to high-income households.
The research also showed that almost a half of all UK homeowners would still be paying their mortgages when retired, as over 5 million people have either remortgaged their homes, or taken advantage of an equity release scheme.
Our view
This is a very dangerous thing given that the future is not predictable and whilst property has been the investment of choice over the last 20 years, the time is fast approaching when there will not be enough people around to buy the properties.
Supply will exceed demand and prices will stagnate.
Our advice: Always have a broad investment portfolio of your Property, Shares, Government Bonds (Gilts), National Savings and Cash.