Malaga When buying homes abroad, people over 50 choose different locations and types of property from those popular among younger purchasers, according to research published recently by the international property agent Savills and the holiday rentals website HomeAway.co.uk. The results were taken from an online survey of 1,200 UK owners of second homes overseas, with statistics relating to the over-50s specifically produced for Saga Magazine.
The most popular destinations for second homes for the over-50s are France (33%) and Spain (29%), followed by America, Portugal, Italy, Cyprus, the Caribbean, Greece, Turkey and Switzerland. The under-50s prefer Spain to France and more tend to buy apartments and choose purpose-built resorts and towns. About half of the over-50s own detached houses, with fewer aged between 61 and 70 buying apartments than those between 51 and 60 or over 70.
As for location, when buyers were offered the choice of urban, mountains, countryside or coastal, 38% of over-70s preferred coastal and a similar number opted for countryside. No over-70s liked an urban location. In the 61-70 age group, only about 4% preferred an urban location, the majority (52%) preferring the seaside. The choice swung a little further towards urban living among those aged 51-60.
Equal numbers aged 51-60 and 61-70 preferred village and rural locations (30% each), only 3% opting to live in a city. However, more people between 61 and 70 (15%) chose to live in a purpose-built resort than those in the 51-60 group (5%). Over-70s mainly preferred to live in a village environment (41%).
David King, international director of agent Winkworth, says: “Languedoc-Roussillon in south west France is very popular with the over-55s and well over half the properties we sell are to the older buyers.”
Gascony, too, attracts many older buyers because of its unspoilt countryside and relaxed way of life.
“They tend to buy traditional farmhouses in country locations, within a few minutes of local shopping,” says Ian Purslow of Anglo-French agents Purslow’s Gascony. Many others, though, choose to retire to Normandy or Brittany, according to Matthieu Cany, managing director of Sextant French Property Agents: “They are close to the UK, so children and grandchildren can come to stay easily.”
The research also reveals what might be an emerging trend. Estate agents report that increasing numbers of over-50s are buying on islands, which meet several of the criteria for this age group. “Islands often have a range of climates which suits the older generation well,” says Charles Weston-Baker, international director of Savills.
“On Madeira, for example, you have everything from mountains to sea. Even if it’s scorchingly hot by the sea, all they have to do is climb up into the mountains for a cooler environment.
At Monte, which is only 10 minutes from the capital, Funchal, but 600 metres higher, the temperature is several degrees lower all through the year.”
Older buyers tend to be more interested in the longer-term benefits of owning a holiday home than younger ones. “Over-50s are more likely to have bought homes to use themselves, rather than solely for potential capital or income growth, and they tend to see their properties as part of the legacies they will pass on,” says Rebecca Gill of Savills. “Indeed, it is this core ‘leisure’ buyer – as opposed to investor – who continues to be active in the overseas holiday home market, making the most of more moderate prices.”
For those who have decided to go the whole hog and move permanently to a foreign country, a new guide, The International Retirement Directory, should prove to be an invaluable source of information. It covers 60 countries and has detailed advice on practical issues including property purchase, taxation, pensions and healthcare.
At present nearly one in 10 Britons of pensionable age lives abroad; by 2050 this is estimated to rise to almost one in five. The most popular destination for emigrating retirees is currently Australia (23.6%) followed by Canada (15.2%) and the USA (12.7%).
More information
Savills - 020 7016 3740 - www.savills.com
Purslow’s Gascony - 00 33 562 676 150 - www.purslows-gascony.com
Sextant French Property Agent - 020 7428 4910 - www.sextantproperties.com
Winkworth - 020 8576 5579 - www.winkworth.fr
The International Retirement Directory is published by Millfield Publishing, price £18.99. To buy it at a 20 per cent discount, click here for the Saga Bookshop.
Written by Mary Wilson, this article was first published in the August 2010 issue of Saga Magazine. Mary's opinions are her own and for general information only. Always seek independent, professional, financial advice.