Introduction

Recent research by Dr Diana Olsberg and Mark Winters published by the Australian Housing and Urban Research Institute found that "More than four out of five respondents (82.8%) saw their home as an investment for the future, 86 per cent said that owning a home means that one is free to make decisions about how one lives, and three quarters (74.8%) said a person could sell the home or borrow against it to provide for needs in old age. The predicted probability of home-owners moving in the future was very low compared to people who were living in privately rented accommodation. Home-owners were most likely to want to age in place (64%), although for many their attachment was not necessarily to the home but to the area in which they lived. Location was particularly important. Pleasure in and familiarity with the area and its facilities were regarded as important factors contributing to people's day to day lifestyles. Proximity to people they know in the area was also important."

This research is very significant because it covered a sample of 7,000 men and women aged 50 or over throughout Australia.

The research also found that "one quarter of respondents expect to use up all their assets before they die. One third of Baby boomers expect that to be the case. More than one third already have assisted children financially, mostly loans not gifts. The desire to bequeath assets is diminishing. Remarriage and new relationships create complexity. There is a dominance of 'Put yourself first after years of hard work' attitudes. One commonly-used expression is SKI (Spending Kids Inheritance)."

The survey clearly shows that the age of withdrawing equity from ones home has spread to Australia.

Products which provide this facility are called "equity release" or "reverse mortgage" products.

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