It’s important to plan for the future. Once you’re retired, your pension pot has to work hard to support you – and as such, choosing the right form of investment is a top priority. Investing in UK property is a good option, providing you manage your investment wisely. Here’s more information.
How Does it Work?
Many retired people across the country are incorporating buy-to-let property investment as part of their pension plan. The main reason is that (unlike other forms of investing) property can be purchased using a deposit, which gives the buyer more freedom and flexibility.
Here’s an example. Let’s say Mrs X has £150,000 to invest. If she chooses to put all of it into stocks and shares, then all she’ll get back is whatever that lump sum makes (which might be a lot, or it might not be). If, however, she chooses to invest in property, she could divide the money, using it to put down three £50,000 deposits on three buy-to-let properties for sale.
This would then provide her with three income streams from rental yield, not to mention any profit made from long-term capital growth.
What Are the Benefits?
There are several advantages to using your pension to build a property portfolio. These include:
- ‘Solid’ asset. Unlike stocks and shares, when you invest in property, you get something tangible for your money. This is reassuring when you’re reliant on your investment to fund your future.
- Less risk. It’s generally believed that investing in property is far less risky than other forms of investment. Unlike shares, there’s almost no chance that your property will suddenly plummet in value – even in tough times, it’s likely to hold its price fairly well.
- Monthly earning potential. Buy-to-let property for sale provides you with a monthly income, which can be a generous amount if you’ve built a property portfolio.
- Hassle-free investment. If you hire a letting agent to manage the buy-to-let houses for you, you can relax and let your investment generate a passive income for you. Working with a property investment agent provides similar peace of mind, as they’ll assist with managing your investments, and will keep an eye out for fresh property investment opportunities.
- Capital growth. If you buy in the right area, there’s every chance that your properties will rise in value; which produces a nice lump sum when you’re ready to sell. If you like, you can then reinvest this money and grow your portfolio even more.
Working with a Property Investment Agent
If you’re keen to make your pension work harder for you, then you might want to consider working with an industry expert. They’ll assist with:
- Finding the ideal buy-to-let property for sale
- Building a long-term investment plan
- Identifying property investment opportunities before they’re made available to the general public
- Helping with buying a house at auction
The Buy2Let Shop are a team of expert property investment agents, offering a range of services designed to empower your investments and take your savings further. For more information, visit The Buy2Let Shop website today.