While the news that UK house prices have hit an all-time high doesn’t help those trying to get onto the property ladder it is good news for many over 50s.
Over 50s Money reports that people over 50 are more likely to own their own home outright or have a small mortgage compared to the property value.
Currently the property market is buoyant fuelled by pent up demand during lockdown and Rishi Sunak’s stamp duty holiday which runs until 31 March next year. However, there are concerns that prices will turn downwards later this year as unemployment starts to rise when the furlough scheme ends, and the anticipated post lockdown recession starts to bite. The next few months provide a window of opportunity for people over 50 to use their equity in their home to sort out their finances.
Currently the property market is buoyant with record house prices and high levels of sales. Even with the stamp duty holiday these conditions are unlikely to be sustained into the winter as the economic downturn kicks in. Many people over 50 are asset rich but cash poor. For those with significant equity in their home the time has never been better to realise this to make their lives more comfortable.
There are two options that most people could consider. The first is selling your house and downsizing to something smaller. The second is to look at equity release, which could give you a tax-free lump sum and enable you to continue to live in the same house. People should carefully think through which option is right for them. They should do this now before the property market starts to come off the boil.
(Story source: Over 50s Money)