Over 50s set to keep Buy-to-let booming
21 September 2017
The buy-to-let property market will be kept buoyant by the over 50s, says Retirement Advantage, as new research reveals that 13 per cent of people aged 50 or over will likely invest in property once they retire.
The research found that of those considering buy-to-let properties, half listed the prospect of capital growth as well as providing a regular income as a key reason and 44 per cent cited a desire to boost their income in retirement.
A third of over 50s believe property is a safer place for their money than investing in stocks and shares, while a similar number (35 per cent) felt it provides better returns than leaving the money in a pension or in the bank.
Andrew Tully, pensions technical director at Retirement Advantage, said: “The buy-to-let market looks set for a boom fuelled by the pension freedoms and in the process will create a new generation of landlords. As a nation, our interest in property remains despite a cooling of the buy-to-let market following the recent tax changes.”
The research, conducted by Censuswide, showed 22 per cent of over 50s have already experienced success at being a landlord, while 18 per cent said they were interested in residential property and would enjoy the process of rental management.
However, Tully warned that those considering embarking on a career as a landlord need to think carefully about withdrawing significant sums of cash from their pension, or risk being subject to income tax.
He said: “If your main priority is to generate an income then the rental yield from the property may not provide the income you expect. With most people’s main asset being their home, the old adage of having all your eggs in one basket has never been truer when it comes to pensions and property. Most experts will advise that a diversified investment portfolio is more likely to deliver the retirement outcome you planned.”
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