New pension laws are expected to lead
to a boom in ‘silver landlords’ as those reaching retirement opt to
invest their money in property.
From April 6, dubbed Pension Freedom Day, people will no longer be forced to convert their pension pots into annuities.
Instead they will be able to withdraw their money in one go and spend or invest it as they wish.
The change is expected to lead to a rush of people aged over 55 who invest their pension savings in property.
From April 6, dubbed Pension Freedom Day, people will no longer be forced to convert their pension pots into annuities.
Instead they will be able to withdraw their money in one go and spend or invest it as they wish.
The change is expected to lead to a rush of people aged over 55 who invest their pension savings in property.
A recent study carried out by insurer
Direct Line for Business found that 32 per cent of people who had a
pension said they were considering using some or all of their savings
pot to purchase a buy-to-let property to provide them with an income
during retirement.
The biggest draw was that an investment property could provide them with a regular income, cited by 43 per cent of people.
A further 23 per cent of those questioned said they thought property was the most secure investment, while 17 per cent were attracted by the prospect of capital appreciation.
Investing in property has the potential to provide good returns. Gross yields on buy-to-let properties stood at 5.1 per cent at the end of last year, rising to 11.1 per cent once house price growth and void periods between tenants were taken into account.
Overall, the typical landlord made a monetary return of £18,893 in 2014, before deductions for mortgage payments and maintenance.
Investing in property can provide a long-term income as long as people maintain their property well, use a good agent like YOUR AGENT and understand the law.”
The biggest draw was that an investment property could provide them with a regular income, cited by 43 per cent of people.
A further 23 per cent of those questioned said they thought property was the most secure investment, while 17 per cent were attracted by the prospect of capital appreciation.
Investing in property has the potential to provide good returns. Gross yields on buy-to-let properties stood at 5.1 per cent at the end of last year, rising to 11.1 per cent once house price growth and void periods between tenants were taken into account.
Overall, the typical landlord made a monetary return of £18,893 in 2014, before deductions for mortgage payments and maintenance.
Investing in property can provide a long-term income as long as people maintain their property well, use a good agent like YOUR AGENT and understand the law.”
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