According to research from HSBC, the number of people approaching retirement who are considering purchasing a property abroad to enjoy their later years is now higher than before the economic downturn.
The number of future retirees aged between 45 and 64 who would consider purchasing an overseas holiday home has risen to 38% (5.4 million) in 2013, up from 30% before the financial crisis (August 2006). This is equates to 5.4 million Brits who are considering an overseas property purchase, as well as one in ten, or 592,400, who said they definitely plan to buy abroad.
However, the majority of would-be buyers would prefer to keep their roots in the UK and not move abroad permanently. Nearly two thirds (62%) would stay in their overseas holiday home abroad for between three and six months a year while a fifth (19%) would use it for no more than three months a year.
HSBS says that the economic downturn has had an impact on the income and savings of many but it has also helped lower the price of property in numerous overseas locations. Many of the baby-boom generation, who are now approaching retirement, are fortunate enough to remain relatively asset-rich despite recent economic frailties and this has opened up opportunities to take advantage of lower property prices abroad.
The favourite retirement hotspot is Spain, with a quarter of those surveyed preferring it, followed by France, Italy, Portugal and Greece.
The attraction of a better climate and relaxed lifestyle is certainly growing, and in many destinations, retirees find that property and general living costs are cheaper. Low interest rates and bargain property prices are also adding to the current appeal of retiring abroad. Is it any wonder that more and more people are joining the silver flight?
