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If speak too many of the “old-timers” and I’ am sure you will heard them say things such as ‘I keep my money under my mattress, ‘ the bank my manager used to know my name’, ‘I don’t trust banks these days’ and the all- time favorite ‘ there is nothing as safe as houses’.

There seems to be something to be said for the last phrase as we see a resurgence in this sentiment as more and more UK citizens turn to property to save for their retirement.

‘For the moment, even though prices aren’t rising everywhere, investing in property would appear to be a very appealing option’ said Jonathan Daines

At this moment in time we can most definitely see the ‘pension plates shifting’ and a ‘sismic shift away from pension funds towards property.’

With the current situation with interest rates, the poor returns people are seeing on bonds, where returns depend upon the uncertainty of the stock market performance of investments, property would seem to be the answer.

Typically people will opt for an annuity when they retire to provide a steady fixed income that they can rely on, this is often not the case anymore due to low yields on gilts and increasing longevity, that is an option that can represent poor value.

  • This is an opinion shared by Bank of England chief economist Andy Haldane who has suggested that investing in property is a better bet at the this moment in time, for retirement planning than putting money into a pension.

Experts in the financial fields of pension planning took offence to these comments and challenge the soundness of this opinion. Whether they have point or not I will let you decide but the latest figures suggest that house prices rose only by 2.9 per cent in the year to July and some predict that prices will only rise by two percent over 2017 as a whole, although:

  • House prices have rose in the south-east England by 37 per cent during the last ten years.
  • London house price rises averaging 70 per cent.

These figures would go a long way to substantiate the opinion of property over pension fund.

The shortage of affordable housing has increased demand and as is the law of supply and demand this has seen house prices rise significantly, coupled with the fact that borrowing has become harder since the introduction of Mortgage Market Review, which in essenence is to ensure that borrowers could really afford their mortgage, both now and in the future.

This has seen the emergence of a worrying trend within the UK property market where it has become cheaper to rent in 27 out of 50 cities surveyed by online property website Zoopla

With that said there could not be a better time to put your money to work in property with interest rates so low savings are not worth being left in the bank, if you need to take a mortgage the interest rates are also on your side.

Visit DevDosh Ltd today for property investment detail.