Half of over 40s considering Buy to Let property as a retirement plan

Half of over 40s considering Buy to Let property as a retirement plan

9:52 AM, 21st April 2015, About 7 years ago 5

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OVER half of those saving towards their retirement say they would consider investing or are already investing in buy-to-let properties to increase their retirement income, according to new research.

A national survey of 915 retirement savers aged 40 or over, found that 8% are already investing in buy-to-let property, while another 45% said that they would consider it.forty

The survey, by specialist mortgage lenders Kensington, comes hot on the heels of suggestions that new pension freedoms could spark a buy-to-let boom.

While 78% of savers were happy to have taken out pensions, 15% currently regretted or were unsure (6%) about saving into pensions to finance their retirement.

“We advise anyone thinking about investing in a buy-to-let property to do their homework first, like any investment, there are risks involved, but with the way the market currently is, property could provide a very good nest egg when it comes to retirement” said a spokesperson for Property118’s Landlord Insurance specialists Discount Insurance.

Latest data from the Council of Mortgage Lenders (CML) also indicates that buy-to-let is a growing sector, with more than 1.63m buy-to-let mortgages worth around £188bn currently representing about 14% of the UK mortgage market.

“The private rented sector is definitely growing, and with many young professionals enjoying the flexibility of renting, there is unlikely to be a shortage of tenant demand anytime soon, especially in prime locations,” added the spokesperson.

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Neil Patterson View Profile

9:55 AM, 21st April 2015, About 7 years ago

I am very skeptical about statistics and surveys, but I do think our generation and above still has a deep rooted desire and trust in Bricks and Mortar.

Jason McClean

10:19 AM, 21st April 2015, About 7 years ago

I expect most readers of 118 have faith in bricks and mortar. I certainly do.

Martin Gardner

10:53 AM, 21st April 2015, About 7 years ago

I must fall into this category then, 42 been self-employed since 21 and getting property as fast as I can .....

Ian Ringrose

11:50 AM, 21st April 2015, About 7 years ago

I "would consider investing" in XYZ for most value of ZYZ if someone asked me what I would consider in many years time.

It does not mean I would make the investment!

Carol Thomas

16:37 PM, 21st April 2015, About 7 years ago

My first BTL property was purchased in 1993. There were no BTL mortgages back then so I just took out another mortgage with a separate BSoc. A lot of people wondered how I got away with it - my answer: I'm paying the mortgage so why should they care! Obviously, banks and BSocs weren't sharing information in those days so there was no problem. I sold that property last year and was lucky enough to pay no CGT; we lived in it for 3 years in between renting. That property was my cash cow, remortgaging gave us the ability to move up the ladder for our residential property and generate several BTL deposits. Those were the days! I've just remortgaged a recent property and they wanted to know everything, bar my shoe size!! It's a lot of work but it was for my pension as I didn't have one with any employers. I think there's still room for more BTL investment and if it's run properly, there should still be money to be made.

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