Until recently we could have only speculate about what most people do with the money they receive in the form of lottery prizes, but a study by Camelot and Oxford Economics helps shed light on this matter. The numbers are relevant and suggest the fact that most winners choose to invest in property and indulge in things they couldn’t afford in the past. Some choose to fulfill a childhood dreams, and very few make little changes in their lives or choose to donate a great part of their newfound fortune.
Property remains the most popular investment
Whether they decide to relocate to a more spacious home, or invest in the real estate, lottery winners are very attracted by property. £2.72bn were spent on property which is 600 millions more than what these lucky people chose to invest with the purpose of insuring a steady source of income. A bit over half of the amount was offered to family, relatives and friends, but the study concluded that most of the money was spent within borders. The GDP was boosted by £750m with £500m being taken in the form of taxes.
Since money is no longer of the essence, the lottery winners are spending lavishly and the average price they pay for a property is £900,000. Since 1 million is only a fraction of what they now own, it is not excessive that they invest so much money in a house. Many of them don’t limit themselves to a single property and acquire several ones, which explains why the last 3000 millionaires purchased almost 8000 houses and flats in the United Kingdom. They feature the latest technologies, so that their new owners will enjoy the luxury that they’ve ever dreamt of.
Improving quality of life
After they make sure that they live in a more spacious and stylish house, most of the winners are focusing on increasing the quality of their lives and the first thing they do is to quit working. It comes as no surprise that people who have struggled to raise a steady income are deciding to take a lengthy vacation and most of them never have a day job. 60% give up work and only 19% return to their jobs, but a third of them do voluntary work and require no payment for their efforts.
Acquiring expensive vehicles is no longer a problem, and all of those who have a driving license are tempted to upgrade their cars. A half of 1 million was spent on new ones, with Audi leading the pack, while Range Rovers and BMWs come second in the preferences of millionaires. These vehicles will mostly be driven in the city the lucky winner call home, because most of their vacations will be abroad. The United States is their main destination, and the Caribbean’s come second.