Increasingly we are dealing with first-time landlords who are looking at property as an alternati...
Increasingly we are dealing with first-time landlords who are looking at property as an alternative to, or to run alongside, a pension scheme. We have landlords achieving a yield on these properties of 6% upwards and, if they buy in the right area, they can then hope to sell the property for a profit. Capital appreciation is an important factor.
Many people turn to the property market for long-term investments when gains from other investments aren’t proving fruitful. In the current climate we’re seeing a lot of new landlords because they’re not getting the returns from the traditional stock market or bank investments route.
A property is a tangible asset, which many people like, and the combination of income and capital growth is attractive to most – whether a landlord wishes to sell on retiring in 10, 15 or 20 years, historically property prices have risen over a significant time-frame.
I would suggest that when people are thinking about their future and retirement that it’s good to have your money invested in a variety of ways and not purely rely on a pension. Investing in property is another option that should be considered.
Always ensure you are properly informed and, if in doubt, ask a lettings specialist such as Belvoir for advice. It is vital to choose the right property in order to maxmise your investment.