Traditional pension investment schemes have proved unreliable, especially as the capital value can fluctuate wildly. Share prices and dividends can rise or fall on a whim, often completely unexpectedly and some pension schemes, following years of contributions, have folded without notice.
A reliably performing pension scheme is such an important aspect of long term financial planning that many people invest prudently where capital is relatively secure but yields are low in return for a lower risk investment.
Property, however has historically outperformed all but the highest risk share indices and bricks and mortar have always been regarded as excellent security. A buy to let investment usually provides a complimentary combination of capital growth and a reasonable yield, typically of at least 6% pa.
Unlike most shares, you can leverage your property investment with a partially tax-off-settable mortgage. Effectively you borrow the bank’s money cheaply, and ideally see a much greater return from yield and capital growth.
A “property pension” is certainly a long-term investment plan, but is highly attractive to those in their 30s and 40s. When held in a tax-efficient pension “wrapper” it becomes even more attractive. But do speak to specialist tax advisors on that point. In terms of the right property at the right price, with the right tenant paying the right rent, then speak to us! Please feel free to contact your local branch.