RENT IS STILL THE NEW PENSION
We posted last year about rent being the new pension, and due to some government changes pensioners were allowed to withdraw their pension pot, and many saw an opportunity in property investment following this. Even though the Buy-to-Let industry has seem saw drawbacks following the 3% stamp duty land tax surcharge as well as changes to capital gains tax, there is still a healthy return on investment available for those who have turned to the property industry.
According to a poll carried out by Responsible Equity Release, they have found that;
“72% of pensioners who have an investment said they would struggle to make ends meet if they didn’t have the income from their buy-to-let”
“81% of pensioners aged over 65 who own a buy to let, admit their properties provide an important, even vital, boost to their retirement income, especially with low interest rates impacting retirees savings”.
For many it seems that buy-to-let properties have benefitted the older generation, as people have drawn out pensions due to the low-interest environment, whilst having said that there are also risks with property and legislation changes such as, mortgage interest tax relief which may be off-putting. However, with the property market remaining strong and rental incomes increasing, Buy-to-Let could still be the more favourable option.
For more information on investment properties please contact our Sales Team on 02920489000 (Option 1).
*You should consider whether this information is appropriate to your needs and where appropriate seek advice from a financial advisor. http://www.keylet.co.uk/pension
Published: July 27, 2016BACK TO NEWS LIST