Latest Video from Leah Norman of Belvoir Peterborough. The transcript is shown below the video.
Hello, I’m Leah, I’m a valuer and buy-to-let advisor at Belvoir Lettings Peterborough. Buy-to-let properties versus pensions is fast becoming a big financial debate.
There are plenty of people who think that investing in property is now the way forward. First time buyers are still experiencing difficulty with rates, but landlords can get their hands on far better deals and they have been able to do so for the last 6 months according to recent surveys. A host of lenders are now offering but-to-let loans for the first time or they’re returning to this field after several years away.
The growth in house prices and higher buy-to-let fields are making this an appealing option. There are 3 top reasons why others are investing their pension into property.
The first, to avoid hefty pension fund fees. Many pension companies charge significant fees or commissions for managing the investment. Even if it’s poorly performing, which will result in the pension pot reducing further.
Another is income and growth. By investing your pension in property, not only could you achieve capital growth on your investment, you could also collect a regular income from the rent. What’s more, if your rental income is enough for you to live off in retirement you could potentially enjoy further capital growth from your investment even when you retire.
The last is it will boost the power of your pension by up to 50%. If you invest your pension into property you could also take out a mortgage of up to 50%, thereby boosting the investment potential of your pension pot and by renting the property out, you’re effectively getting someone else to pay the mortgage through the rent collected.
A recent poll of 1,500 people by market research company, Consumer Intelligence, found that 1 in 3 are relying on property to help them provide an income in retirement. A third said they plan to receive retirement income from 1 or more buy to let properties, while more than half, 55%, said that they would sell their own home and use the money to pay for a retirement.
It’s hardly surprising that a growing number of people are shunning pensions in favour of property, returns from companies and private pension schemes are uncertain, as they depend on the investments’ performance and your money is locked away until you are 55 at the earliest.
Here at Belvoir! we work closely with Taylor Rose Financial who can provide one-to-one advice on your pension and the best route for you. If you require any additional information please contact myself, Leah Norman on my email address which I will put in the link below. Thank you.
If you require any more additional information, please contact Leah Norman, Belvoir Peterborough’s Valuer & Buy to Let Advisor on 01733 321500 or via email: Leah.norman@belvoirlettings.com
