The UK Buy-To-Let market is set to be given a boost by retired investors as new research reveals that more than one in 10 over 50s want to buy an investment property when they retire.
According to analysis from retirement income and equity release specialist Retirement Advantage, this boost is expected to create 1.3 million new landlords.
So why are retired investors turning to property for investment income?
Well, there are many benefits of investing in property for retirees. Not only does a property investment provide reliable income and returns of up to 10 percent per year but according to Retirement Advantage, 30% thought that property was a safer bet than an investment in the stock market.
With volatility at an all-time high, interest rates at an all-time low and political uncertainty ahead for the world’s largest economies, you can understand why so many of today’s retirees are investing in a reliable asset like property. Not only do investors view property as a safer bet, 30% believe it would generate better returns than keeping money invested in a pension or putting cash in the bank.
These findings come despite new tax rules that are making it more difficult for investors to make money from property, including higher rates of capital gains tax and stamp duty for second homes. The latest research makes it clear that these aspects shouldn’t be viewed negatively and Buy-To-Let remains profitable despite these changes.
Consequently, whether you’re a first-time property investor or you have been investing for years, it is important to understand all of the costs involved such as property management fees. Additionally, you will also need to carry out extensive research on the cities where you decide to purchase your Buy-To-Let. Edifice Invest can provide you with a full analysis of each available area to allow you to make the best decision for your retirement.
So if you’re seeking an extra income or you want to save for retirement then Buy-To-Let could be your answer. You can speak to one of our advisors who can provide you with a magnitude of information to help you decide on the best area for your investment. Fill out our contact form below and we will be in touch.