The government’s recent pension reforms have given retirees the freedom to cash out their pensions and invest them in any way they wish.
Many of these retirees have taken the decision to invest in buy-to-let properties. The main reason for this decision is the volatility of the financial markets they depend on for their retirement income.
Retirees may prefer to invest their savings into something more tangible than the ever-fluctuating stock markets. As such, many have chosen solid bricks and mortar. This is a wise decision to make.
Brexit has caused some property price rises to slow slightly, but this seems to have been a temporary blip. Prices in London have started to recover in recent months, so investing in London property is still a sound investment, especially when viewed as a long-term investment.
However, although a buy-to-let property can offer a good return on investment, it is important that investors do their market research before investing in anything. Don’t invest before you have all the right information at your fingertips.
You must buy the right property
This may sound obvious, but if you are thinking of cashing in your pension and entering the buy-to-let market, it is important you buy a property that will be easy to let out. This not only means it should be in a good state of repair, but it should also be in a location where there is strong rental demand – somewhere people actually want to live.
This may depend on the type of tenant you are looking for. Young professionals will want to rent near to where they work, near to good transport links, and near to good nightlife venues. Those with young families will be looking at good schools and other social amenities that go with raising a family.
Once you have chosen the right property in the right area, then the job of being a landlord begins – you should also research what being a landlord involves.
Do you want to work hard during your retirement?
The whole point of a pension is so you can have an easy, stress-free, and hopefully work-free retirement. You want to enjoy your retirement years.
With this in mind, you should consider what being a landlord entails. It is not just a matter of sitting back and collecting your rent each month. You will be responsible for maintaining the property and undertaking all repair work as and when required. You will need to be on call 24 hours per day, and expected to react to any emergencies, such as a burst water tank or an electrical failure.
There will also be the possibility of having to deal with a tricky tenant, or the stress of worrying about void periods and no rent coming in.
Is this how you wish to spend your retirement?
Why not do it the easy way?
Would it not be a better idea to let someone else do all the hard work for you? You can look to an agency whose workforce has years of experience of managing properties for landlords, who can offer you peace of mind, a stress-free retirement, and ensure the protection of your investment. A management company can also provide you with a rent guarantee scheme that will protect your income for up to five years.
If you believe you deserve to spend your retirement enjoying life and not worrying about your buy-to-let investment, call us today. We can offer advice on all aspects of property management and rental guarantee schemes.