Buy to let property investment has always been a good addition to any retirement portfolio, especially because it offers the investor a sustainable and regular income in the form of rent and the chance of decent capital, something that welcome well into your retirement years.
Recently a leading authority in the buy to let property investment industry has urged pensioners to use caution when toying with the idea of adding a property to their retirement portfolio.
Andrew Turner, chief executive of Commercial Trust Limited, says: “I firmly believe that, despite a lot of recent change in the industry, buy to let remains a sound investment option. Further buy to let property investment is excellent news for the industry, the housing market in general and for tenants, particularly at a time when demand for rental properties is currently outstripping supply.”
Andrew went on to say that all would-be investors should take the time to seek out professional financial and tax advice, even more so for pensioners for who capital preservation is a matter of survival.
The comments from Mr. Andrew Turner cam of the back of a new survey commissioned by Retirement Advantage, the survey consisted of 1,005 people aged 50 or older, the participants of the survey were yet to retire but had some form of private pension savings in place, with a significant number (13%) planning to invest into some sort of property investment when they reach retirement age, not limited to a buy to let property investment.
If we apply this 13% to the rest of the UK when they retire this equates to a further 1.3m buy to let property investment landlords in the coming years.
Those who completed the survey pointed out they see buy to let property investment as a great way to provide capital growth on their investment, with 50 per cent looking to receive a regular income from rental properties and 44 per cent aiming to boost their retirement income.
So to all the would-be buy to let property investment guru’s out there right now, remember there has been numerous changes to hard costs like stamp duty and tax allowance recently, so don’t forget to see financial advice before jumping aboard the buy to let property investment gravy train.
“There is good reason why shrewd people are seeing the appeal of buy-to-let mortgages. However, there are no guarantees regarding future interest rates or returns from property, pensions, bank accounts or stocks and shares. Rules introduced by the government over the past couple of years have also brought significant change to the cost of buy to let and landlords have seen enormous taxation upheaval” warns Turner.
He adds that separate legislation means there are a number of requirements that landlords have to meet such as the health and safety of their property and a tenant’s right to rent in the UK.