Nationwide property lettings specialist, Belvoir, is advising caution in the wake of the Chancellor's Budget
Helping a new breed of 'buy-to-let pensioners in Liverpool and the UK
With the recent unlocking of rules on how people can access their savings in retirement, could a new breed of 'buy-to-let pensioners' be ready to enter the local property market?
Nationwide property lettings specialist, Belvoir, is advising caution in the wake of the Chancellor's Budget announcement that savers will be allowed to withdraw their entire pension fund from the age of 55 or over, rather than take the money slowly as an annual income, such as an annuity.
"Since the last Budget, many financial commentators have speculated that following the new rules – due to come into effect from April 2015 – pension savers could draw down some or all of their money to invest in options such as buy to let property," says Belvoir Liverpool West Derby manager Adam Rastall
"With recent surveys reporting that buy to let has outperformed all other mainstream investments over the past 18 years, this could be an extremely attractive option for anyone wanting to safeguard their capital and maximise their income in retirement.
"Whilst this may be true, we believe that anyone considering their first move into the sector should take expert advice from local agents in your area.
"Buy to let continues to offer great opportunities, but potential investors must have a clear strategy, and it should never be considered as a 'get rich quick' scheme."
This year marks the 18th anniversary of the buy to let mortgage initiative launched by the Association of Residential Lettings Agents (ARLA). Tracker studies indicate that since its introduction, buy to let investment has provided an average return of 16.3 per cent – considerably more than most other asset classes.
Over a third of Britain's 1.4 million private landlords already view their buy to let portfolio as the main component within their pension plan.
Dorian Gonsalves, commercial director for Belvoir, said: "The Chancellor's recent pension reforms have ignited a great deal of interest in buy to let as a viable and attractive alternative to more traditional pension plans."
Some industry commentators are predicting returns of around 11 per cent per year over the next decade and a number of specialist, buy to let lenders have also started to reconsider current age restrictions to allow people up to age 70 to apply for long term buy to let mortgages – subject to them meeting certain criteria.
Adam adds: "We would recommend that anyone looking to use pension savings to fund a buy to let investment should – as a first step – take professional financial advice and then sit down with a property lettings specialist, such as Belvoir, to map out a strategy for their future goals. We have an offfice at 54 Mill Lane, West Derby, Liverpool, L12 7JB and we would be very happy to discuss their requirements.
"With our local knowledge we can look in detail at potential property 'yields' – taking into account all outgoings, such as maintenance costs – and provide novice investors with a realistic expectation on returns.
"All Belvoir offices are staffed by experienced, highly trained specialists and we are happy to offer a free initial consultation to anyone wanting to learn more about how to become a successful property investor. And for those who do decide to invest their pension funds into property we can provide a full range of services to ensure their new investment is a trouble-free one."
If you would like further information regarding the services or advise that we can offer, then please do not hesitate to contact Adam Rastall at our Belvoir Liverpool West Derby office on 0151 256 0880.