The rise of 'buy to let' pensioners?
This year marks the 18th anniversary of the buy to let (BTL) mortgage initiative launched by ARLA. Tracker studies indicate that since its introduction, BTL investment has provided an average return of 16.3 percent – considerably more than most other asset classes.
Over a third of Britain's 1.4million landlords view their BTL portfolio as the main component within their pension – the 'safety' of bricks and mortar investment with regular rent as income makes it an attractive investment choice.
The Chancellor's recent pension reforms have ignited a great deal of interest in BTL as an attractive alternative to traditional pensions, and demand for well-maintained rental property remains high.
With the excitement generated by the reforms, anyone looking to use savings to fund a BTL investment should take professional financial advice and then talk to a local property specialist, such as Belvoir, to map out a strategy for future goals.
With our local knowledge we look in detail at potential property yields - taking into account outgoings, and provide novice investors with a realistic expectation on returns. We will also advise the legislative and other issues to consider.