Due to the announcements in the budget could 2015 by the year of the ‘BUY TO LET’ pensioner?
Due to the chancellor recently unlocking of rules on how people can access their savings in retirement, could a new breed of ‘buy to let pensioners’ be ready to enter the local property market?
In the wake of the Chancellor’s Budget announcement that savers will be allowed to withdraw their entire pension fund from the age of 55 or over, rather than take the money slowly as an annual income, such as an annuity.
Already there is much speculation and interest amount many within the investment property industry, since the last Budget introduced the following: pension savers could draw down some or all of their money to invest in options such as buy to let property
The speculation if fuelled further with recent surveys reporting that buy to let investments have outperformed all other mainstream investments over the past 18 years. Thus making investing in property an extremely attractive option for anyone wanting to safeguard their capital and maximise their income in retirement.
As with all major purchasing decisions we believe that anyone considering their first move into the sector should take expert advice and carry out due diligence prior to starting to invest their pension.
As shown in recent research buy to let continues to offer great opportunities, but potential investors must have a clear strategy, and it should never look upon it as a get rich quick scheme
Jesse Fossey Taylor comments “The pension reforms have ignited a significant amount of interest in buy to let property investment as a viable and attractive alternative to more traditional pension plans.”
Jesse further states “We have found demand for quality, well maintained, rental property remains high and even before the recent budget announcement both ourselves and our sister company Butterfield and Taylor Lettings are experiencing a growing number of enquiries from people seeking advice and guidance on how to enter into the lettings this sector for the first time.”
Over a third of Britain’s 1.4 million private landlords already view their buy to let portfolio as the main component within their pension plan – with the relative ‘safety’ of bricks and mortar investment coupled with regular rental returns as income, making it an attractive investment choice.
Ila of Fossey Taylor comments “Although there has been a lot of press and excitement generated by the new reforms. I would always recommend to a potential customer that if they are looking to use pension savings to fund a buy to let investment, they should take professional financial advice and then sit down with us to map out a strategy for their property portfolio goals.”
One of the keys to building a successful property portfolio is the importance of buy property at the right price, in the right location and to identify the type of accommodation that people will want to rent now and in the future.
Fossey Taylor has extensive knowledge of Nottingham, therefore we can look in detail at potential property ‘yields’ – taking into account all outgoings, such as maintenance costs – and provide novice investors with a realistic expectation on returns.