Majorities of adults who own their primary residence in Germany (65%), France (60%), Italy (55%), the U.S. (54%) and Spain (51%) all expect the price of their residence to remain the same one year from now. Homeowners in Great Britain are split – 43 percent expect it to remain the same while 42 percent expect it to decrease.
Two-thirds of American homeowners (68%) as well as majorities of home owners in Italy (64%), Spain (57%), and Great Britain (56%) and 45 percent of homeowners in France all expect the value of their home to increase five years from now. Germans are a bit more pessimistic as almost half of homeowners there (48%) say they expect it to remain the same.
Additional results of a Financial Times/Harris Poll conducted online by Harris Interactive® among a total of 6,220 adults (aged 16-64) within France, Germany, Great Britain, Spain and the United States and adults (aged 18-64) in Italy between July 2 and 14, 2008 found that:
- Majorities of those who rent their primary residence in France (61%), Great Britain (56%) and Spain (54%) say they expect the amount they pay to increase one year from now. Majorities of renters in Germany (70%), the U.S. (62%) and Italy (52%) expect their rent payments to remain the same one year from now;
- Majorities in France (67%), Germany (62%), the U.S. (61%), Great Britain (55%) and Italy (55%) all say they are not at all concerned they might lose their residence because they are not able to make their mortgage or rent payments. Adults in Spain are a bit more concerned as 39 percent say they are not at all concerned while 33 percent say they are somewhat concerned; and,
- Majorities in Italy (72%), Spain (59%) and France (58%) say the government should have a lot of involvement to support the property market through initiatives such as cutting property related taxes or subsidizing mortgage rates. Majorities in the U.S. (58%), Great Britain (51%) and just under half of adults in Germany (49%) say the government should have some involvement.
There are also different ways to look at property – either as primarily a residence or an investment property.
- Strong majorities in the six countries (from 73% in Italy to 90% in Great Britain) say they regard property primarily as a place to live;
- Majorities in Great Britain (76%), Spain (69%), Germany (67%), the U.S. (64%), and France (55%) as well as just under half of adults in Italy (49%) say they are not at all likely to consider buying investment property either in their own country or abroad;
Among those who are considering the purchase of investment property and are not currently retired, there are mixed feelings on whether that investment would be part of their retirement plans. A majority of these adults in France (55%), just under half of adults in Great Britain (49%) and Italy (48%) and a plurality of adults in the U.S. (44%) say it is no part of their plan for retirement. Majorities of adults in Germany (56%) and Spain (55%) say it is part of their retirement plan.
So What?
The housing and economic crisis is not relegated to just one country and it is slightly comforting that such high numbers are not at all concerned that they might lose their residence. However, one in ten owners and renters in Spain (10%) and Italy (9%) are extremely concerned and between 12 percent (France) and 27 percent (Spain) of adults in all 6 countries are at least fairly concerned they might lose their home. And, people are expecting their government to do something – but will it be enough and in time.
