Property as a Retirement Asset

Many homeowners assume that their property will serve as a financial cushion in later life. The idea is simple: sell the house, downsize, and use the proceeds to fund retirement. However, reality often complicates this strategy.

The Downsides of Relying on Property

While property is a valuable asset, it is also illiquid and carries financial risks. Downsizing does not always free up as much capital as expected due to:

• Moving costs, including legal fees and stamp duty.
• High prices in sought-after areas, which reduce the financial benefit of buying a smaller home.
• Emotional ties, which make it difficult to leave a long-time residence.