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Investing in UK Property or a Pension? The Facts

It’s always wise to prepare for the future. Pensions are the more common option for investors – but some experts suggest it’s actually wiser to place your savings in property instead. If you’re not sure which option is best for your retirement, here are a few facts to guide you.

Investing in UK Property – Why Should You Do It?

There are several advantages to property investment in the UK; a fact that many savvy people have already wised up to. Investing in property somehow feels more stable – after all, you’re actually purchasing something tangible, which can be used for all sorts of purposes.

Property values have gone up dramatically across the country, and look set to continue in the future. This means there are profits to be made from capital growth, equalling thousands of pounds. You can also use property to generate a further income stream – from rental yield. Build a property portfolio, and the profit gained from rent could even provide you with a full-time salary.

Even better, property investment offers great flexibility. If, ten years down the line, you decide to invest your money elsewhere, you can simply sell the property and invest the profits somewhere else. Likewise, if you decide you want to live in the property yourself, you can simply give your tenants notice, then move in within a few months. In short – it offers a lot of attractive options.

Any Disadvantages?

The main issue is that you’ll need to spend some money initially – in the form of mortgage fees, insurance, stamp duty, plus any maintenance costs involved with bringing the house to standard. This shouldn’t be a problem if you’re happy to invest for a longer term, as you’ll invariably make the money back (plus more) over time. However, if you’re looking for a ‘get rich quick’ scheme, property investment probably isn’t for you.

Is a Pension a Safer Option?

Some people favour pensions, because they’re perceived as less risky – i.e. it’s very unlikely you’ll receive less at the end than you paid into it. The 2015 pension freedoms also lured people into choosing a pension over property, with it now being possible to take a lump sum from your pension pot.

However, this safety comes at a cost – you won’t ever generate a ‘profit’ and your payout will always be limited to the agreed amount; whereas if you purchase a property in the right place, the sky’s the limit in terms of potential profit to be made.

Property Investment Agents

If you do decide to invest in UK property, it’s wise to get some professional support. A property investment agent will not only know the property market inside-out – they’ll also have a range of great property investment opportunities on their books, which are priced competitively to sell, and aren’t available to the general public.

Before searching for buy-to-let property for sale, talk to The Buy2Let Shop, who are on hand to assist with your investment – from finding the right house or apartment, to generating maximum profits for your retirement. For more information, visit The Buy2Let Shop website today.

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