X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Buy-to-Let

    The "grey" £ in property ....

    I believe that retirees have a significant impact on the property market.

    Over-50s in Britain are now among the most affluent members of society, with more disposable income than most young people, according to this article.

    [Image: the-grey-pound.jpg]

    Saga Services, which specialises in insurance and financial services for the over-50s, senior citizens are having a huge impact economically, as they have the means and the will to spend.

    Phil Loney of Saga said: "More people are now retiring with either a private or occupational pension and there is also a cascade of wealth coming down through the generations as property is passed down. The post- war trend for owning your own property means much of this property is now being inherited by people aged 50 and over."

    The survey showed that 75 per cent were spending significant sums of money on holidays each year. The second most popular area of expenditure was motoring, followed by home improvements.

    Mr Loney added: "As far as finances go, 88 per cent of over-50s were planning their financial futures themselves. Most of them have been saving for the past 30 or 40 years. They are a group of people who have lived through a financial revolution with the introduction of Peps, Tessas and pensions. They are quite familiar with these and happy to make their own decisions."

    In another report ....

    The number of 'grey lodgers' is up by a third over the last 18 months, according to a report from easyroommate.co.uk.

    It appears that renting is an increasingly attractive option to older people, as their finances have dwindled.

    The average length of a retiree's stay in flat-shares is down from six months to four, which suggests many retirees are using it as a cost-effective stop gap during the downsizing process.

    Some 3.2 million homeowners intend to downsize to help fund their retirement.

    Jonathan Moore, said: "The finances of those about to retire and those in the early stages of retirement have taken a serious knock over the last few years.

    "Many of these retirees have equity locked in their homes which they need to access to boost their retirement income.

    "With the sales market in such a sorry state, downsizing is not a straightforward process and many find themselves needing to find short-term accommodation between selling their properties and finding a new home."

    _______________________________________

    When retirees do downsize, they often move to the coast and buy a property for cash, which keeps coastal property prices robust.

    Retirees make great tenants as they tend to look after properties and do not cause so much wear and tear.

    Do any PT members specialise in letting to retirees? Do they have special needs such as wheelchair access, or bungalows that can be accommodated. I can imagine that it could prove to be a lucrative niche strategy ... especially as people are living longer ... and longer ...
    0
    0
    A topic I'm particularly interested in as that demographic includes David and myself!

    I'm not sure that the "grey" spending power is a new idea - I think this has been true for the past few decades, though I'm basing that on anecdotal evidence rather than solid research.

    What is changing though, are the needs and expectations of those of us at the younger end of the grey spectrum. We expect to live and lead an active life for longer, but need to act sensibly and plan as in 20-30 years we might need more practical accommodation that includes lifts, grab rails or single-storey living.

    Strangely enough, we were discussing the concept of high-end HMOs for the older generation last weekend just before this report came out. So many are left on their own, that it is surely one way of overcoming the loneliness that strikes so many after a partner has died. This concept could be a stop gap for those who want companionship and to retain independence, and who are not ready for a residential home. Similar to sheltered accommodation I guess, but I'm not convinced that there is adequate supply to meet needs over the next 30 years.
    0
    0

    Jayne Owen @jayneowen

    Editor and Writer: Your Property Network magazine

    Investor: Mozaique Property, South & West Wales and South West England

    Occasional reviewer at The Property Bookshop (@Property_Books)

    (15-02-2013 01:02 PM)vanessa warwick Wrote:  Retirees make great tenants as they tend to look after properties and do not cause so much wear and tear.

    Do any PT members specialise in letting to retirees? Do they have special needs such as wheelchair access, or bungalows that can be accommodated. I can imagine that it could prove to be a lucrative niche strategy ... especially as people are living longer ... and longer ...

    When the under 35 rule came in for LHA I replaced most of my younger single men/woman in my one beds with the more mature tenant so I now have a smattering of over 50`s. They keep themselves to themselves have great stories to tell and I never hear a whisper of a complaint from them. So I can sing the praises of the older generation as tenants.

    And yes they do not cause so much wear and tear I believe.
    Their own bodies maybe show signs of wear and tear - but unfortunately I cannot offset that against tax!
    0
    0

    Jonathan Clarke. http://www.buytoletmk.com

    As an example my mother has bought a property from oldies that have moved 9 minutes walk further so they are 'in' the town centre.
    In about 10 years she may well choose to move to a retirement complex or a flat which is 8 mins walk away from where she is.
    She won't be driving anymore!
    If a LL has a property in a town centre suitable for an oldie who has money; not a bad business model; all those 'grey' pounds!?
    So investing in town centre apartments etc; near all facilities is attractive to oldies who don't need a care home yet.
    So they sell up and rent or buy!
    Plus the proceeds of the sale of their property will have been 'gambled' away!!; so all care home fees will be paid for by the council!
    For LL this is a fantastic market.
    Once in the property very few will be leaving unless off to a care home or in a long box!!
    Give me a 70 year old tenant any day over a 40 year old!!
    Most will have good pensions to pay the rent!
    0
    0
    (16-02-2013 11:42 PM)paul_barrett Wrote:  So investing in town centre apartments etc; near all facilities is attractive to oldies who don't need a care home yet.

    This is true - In our old house it was a challenge but I reckon I could time it so that in the 3 minute advert break I had just enough time to run down the back alleyway which joined our house to the high st to pick up the pre ordered indian takeaway and be back in my seat before the programme resumed.

    ( Sky Plus of course nowadays takes all the fun out of this weekly challenge)
    .
    2
    0

    Jonathan Clarke. http://www.buytoletmk.com

    If this thread about pension reform is anything to go by, the numbers of retirerees in the PRS is going to continue to grow massively.
    0
    0
    Grey pound in the news again ...

    A February jump in new seller asking prices is due to increased market activity from older generations, according to Rightmove.

    The average property asking price now stands at £235,741, a full 2.8 per cent up on January. This is the highest level prices have been in February since before the collapse of Lehman Brothers in 2008.

    And Rightmove say that this is in no small part down to seven in ten of those intending to sell in 2013 being over 45.

    Miles Shipside, director and housing market analyst at Rightmove said that 2013 is enjoying a "sprightly start", but added that activity remains patchy across locations and property types.

    "With age comes experience and, more importantly, equity, and it these old hands that seem most confident to plan a move this year," he continued.

    "They say life begins at forty, but in today’s housing timetable you do not reach your upwardly-mobile prime for at least another five years.

    "It’s another stress to add to your mid-life crisis list that bettering your property lot is being pushed back into middle age, postponing your mortgage free status and putting you at risk of being an OAP mortgagee, and possibly even delaying retirement."

    Read the full article >>> here
    0
    0

    It seems that pensioners are increasingly looking to BTL to supplement their pension income.

    The latest research by Saga revealed an 11% rise in the number of 'Grandlords' (landlords of retirement age) last year and a marked 33% increase since 2009. There has also been a particular increase in female pensioners renting out property, with a growth of 12% in 2012 and 43% since 2009.
    0
    0

    The UK is experiencing a growth in the number of private rented sector tenants aged over 50 and a rise in the length of tenancies to 19 months.

    There has been a 6% year on year growth in the older group of tenants over all with most regions seeing a rise in this sector, according to the latest quarterly index from Countrywide, one of the UK’s biggest lettings agencies. There has also been a 7% year on year decline in the number of tenants aged under 25 in the second quarter of 2013.

    Average monthly rents have risen by 1.1% year on year to £845 per calendar month. Scotland seeing the greatest increase at 6.7% compared with the first quarter of 2013.

    Yields remain strong across England, Scotland and Wales with Wales seeing the highest yield at 6.6%, followed by the Midlands at 6.5% and the North at 6.4%. Arrears fell on average by 0.8% year on year but increased in Scotland 2.4% and Wales 2%.

    Most regions saw a rise in the number of over 50’s renting properties with East of England and East Midlands recording the greatest increase at 3% year on year, followed by Wales and London up 2%.

    The significant decline in tenants aged under 25 is greatest in Wales where there has been an 8% decrease, followed by the South West and East of England with a fall of 3% and the South East down 2%.

    Read the source story from Property Wire >>> here.
    0
    0

    Have to feel for the young right now. The average age of FTB has risen to around 37, I believe, and now there's reports above suggesting that 25 year olds can't even get to rent. Bit different to my day (only mid 90's, but a world away it seems)
    0
    0
    (12-07-2013 08:32 AM)brucespanner Wrote:  and now there's reports above suggesting that 25 year olds can't even get to rent

    my daughter is 25. I bought a lovely flat nearby last year for her to rent from me but will she take it!!!!
    so shes still at home - secretly i dont mind of course because I get some rent out of her and more rent out of the other place.
    She sorts the dishwasher out and walks the dog giving me much more of the all important `me` time to watch the cricket and Zzzzzz
    0
    0

    Jonathan Clarke. http://www.buytoletmk.com