Is invest your money in property a secure and high yielding investment than you pension?

askus

Following the recent budget announcement on pensions many retirees from April 2015 will take their entire pension fund to invest in buy-to-let property.

Soaring house prices over many years mean the popularity of residential property as an investment is growing fast, with more than two million buy-to-let landlords in Britain.

If these price trends continue they could outweigh the tax disadvantages of property

Today’s government plans are to supporting the increasing the supply and demand of housing so it is very unlikely we’ll see a move that would inflate demand.

Whilst speculation mounts that retirees will use their entire pension pot as cash to invest in buy to let. If the buy-to-let property investments had significantly outperformed the funds held within the pension and Isa, the total potential returns could still be much higher, making property a more lucrative investment despite the tax disadvantage.

Projections by the Association of Residential Letting Agents (ARLA) suggest that every £1,000 invested at the end of last year using a 75% LTV mortgage would be worth £2,910 by the end of 2023. This would provide an average annual return of 11.3%. The corresponding annual return for an unmortgaged investor, they say, would be a more modest 6.3%c

Since the birth of the buy-to-let mortgage 18 years ago in 1996, buy-to-let investments have provided average returns that easily outstrip those of other major asset classes.

Additionally, UK landlords are benefiting from falling mortgage charges and longer fixed rate deals, as competition between mortgage lenders is hotting up.

???????
?

monthly

Contacts

(NO SPAM)

(Must be 18 or older)

By submitting your information you are agreeing to speak to a qualified adviser to help you with your requirements.