Currently around a third of Britain’s 1.4 million private Landlords see their property portfolio as central to their pension plans and, thanks to the Chancellor, from April 2015 people aged 55 and over will be able to withdraw some or all of their pension to invest in property.
A recent survey by Wrigglesworth Consultancy reported that buy to let has outperformed all other mainstream investments over the past 18 years. The diagram shown here demonstrates how much £1,000 invested in 1996 would be worth now depending on the investment made. It’s easy to see why property is such an attractive option!
Unsurprisingly I’m receiving an increasing number of enquiries from pensioners and those approaching pension age, who are thinking about investing in property for the first time.
But buy to let is not a get rich quick scheme, and I always advise those people who are new to property to make sure that the first thing they do is take professional financial advice. This is especially important if you’re thinking of using your pension pot, as if something goes wrong you may not have a regular salary or additional capital to fall back on. Regardless of all the headlines, buy to let is not without risk!
With finances agreed it’s time to talk to a property lettings specialist such as Belvoir. Investors, particularly first-timers, need to be careful to buy property at the right price, in the right location and of the right type to attract tenants now and in future years. This is afterall a longterm plan.
At Belvoir Enfield we are happy to offer a free, no obligation, initial consultation to anyone interested in becoming a successful property investor. And for those who do decide to invest their pension funds into property we offer a full range of management and other services to help ensure their pension investment runs smoothly.
