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19: Is property the new UK pension?



Why is trust in pensions so low?

It seems people’s trust in their pensions has reached an all time low, for the following reasons:



Buy-to-let as an alterative

Let’s now take an example of a good buy-to-let property in London – a large lower end ex-council flat in a good fairly central location (Acton, Bow, Battersea, Stockwell). If one has £25,000 cash, this is enough to buy say a 4 double bedroom ex-council flat in London for £150,000 that will deliver about £1350 gross income a month. After mortgage costs (85% borrowing) and other costs, this property would make £500 income (profit) a month – or £6000 a year income on an investment of £25,000. If house prices rise 15%, then the £22,500 equity would double to £45,000 as the flat’s value rise to £172,500. Even if the prices dropped, the property would still be delivering a healthy income – it is likely rental demand would strengthen further. And because London has a shortage of lower prices rental housing, the flat is likely to stay full and hence be relatively low risk.



You also have other benefits over normal pension funds:



Of course there are many risks to consider when property investing – as mentioned on this website – but is it any wander why more and more people are taking control of their finances and financial futures by investing in property. 





What if I invest in the stock market?

If you invest in the stock market you have to:



For me, stocks have far too much risk. For someone who puts a red mark against almost all the above criteria – I frankly things it’s a gamble. And I don’t like gambling. I like investing.  Even if there was just one risk not covered, I would feel like it might be too much of a gamble. That is why I invest in residential buy-to-let property – a good conveyance solicitor spends weeks/months knocking the risks away. I would also prefer to pay no commission and create value for myself and my family, rather than someone else that I have never met or do not know.


If you think this Special Report is helpful, or if you do not agree with it or have different views, please email me on: . I can then incorporate your views into future reports or into the newsletter.




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