29 Mar 2016
Detached home owners in Scotland looking to downsize could be in line for a potential windfall of over £100,000 if they trade down to a semi-detached property, according new research.
And those planning to move from a detached property to a bungalow could raise an average of £66,000, a report from the Bank of Scotland says.
For those trading down, the potential amount that can be raised by downsizing from a detached property to a bungalow has risen by 14% (or £8,365) over the past decade. A downsizer today would receive an average of £66,190 compared with £57,825 in 2005.
The UK average growth is 2% (or £1,616), allowing Scots to realise a greater benefit from the move.
The potential amount of cash Scottish homeowners could raise by downsizing their property from a detached home to a semi-detached stood at an average of £100,778 in 2015 - an increase of 12% (£10,469) since 2005.
Across the UK, downsizing is the most popular reason for people looking to move to a new home in the next three years, with 46% of those surveyed citing that as a reason.
The main reason people cited for downsizing was to move somewhere which better served their circumstances (53%). Other reasons given were to reduce bills or free up equity (both 39%), or to provide extra cash for retirement (31%).
The average age for a downsizer was 53 and a fifth said that they were downsizing earlier than they had anticipated, citing reasons such as health, changes in relationship status and need to be closer to better local amenities. A third also said that they were planning to move to a more affordable area.
Three quarters of those downsizing said they expected to profit from their move, with 35% saying that they planned to reinvest their additional capital in a new property. 29% said that they would invest in other financial products, whilst only one in five (21%) planned to invest in their pension or pass the earnings on to their family.
Aberdein Considine offers a unique blend of property and financial advice for people looking to downsize their property, including estate agency, investment and pension advice and retirement planning.
If you would like to speak to one of our experts, call 0333 0044 333, click here, or visit one of our 17 offices across Scotland.