Is property a good investment for retirement?
Yes, we believe with the right strategy it’s certainly possible to retire through Buy-to-Let property investment. Depending on a number of factors such as:
- The size of your portfolio
- Gross rental income
- Level of retirement lifestyle
Before making any investment, you need to explore the different strategies and tactics on how you can create a comfortable retirement or even early retirement through Buy-to-Let property investment.
We asked expert property investor Andy Foote and Director at SevenCapital about his journey in property investment including his initial influence, the obstacles he has overcome and the tips he would give to any property investor.
Master Property and Retirement
Retire through UK Property: Property vs Pension
As a growing number of retirees are developing Buy-to-Let portfolios in later life, we look at the pros and cons of investing your pension into property.
View ArticleThe 6 Best Cities for Retirement in the UK
Where are the best places to retire in the UK and what makes a good place for retirees? We explore the factors and the places that tick all the boxes.
View ArticleHow to Retire Through Property in 5 Years
Designed to deliver freedom and security through passive income, the following plan is just one example of how to set up retirement through property in five years.
View ArticleInvestment Strategies: Yield vs Capital Growth
We answer a common question that's vital for planning your investment strategy: are you looking for capital growth or growing your rental yields?
View ArticleHelpful Tools
Stamp Duty Calculator
Use our Stamp Duty Calculator to ensure you're aware of all the costs when making a UK property purchase including Buy-to-Let stamp duty calculation.
Use CalculatorRetirement Guide in the UK
Stay Ahead of the Market: Retirement Property Investment Guide. Gain key insights into how to build the perfect retirement investment plan for you.
Request GuideIs now a good time to invest in the UK Property Market?
Regional cities continue to dominate growth, using the momentum of redevelopment and housing undersupply to push prices further upwards. Borrowing costs remain at a record low and a relatively stable labour market is also helping to combat the impact of uncertainty.
With many forecasts also pointing at marginal rises within the London market, the so-called ‘Boris Bounce’ could mean light at the end of the tunnel for the capital, which finally seems to be recovering from its biggest decline since 2009.
Another major question is, does this increase represent a short-term positive bounce or the beginning of a new property cycle? And what does this mean in terms of the overall UK property market forecast for 2020?
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Frequently asked questions with pensions and property
What is the average retirement income in the UK?
Minimum: Individual needs an annual income of £10,200. A couple needs £15,700.
Moderate: Individual needs an annual income of £20,200. A couple needs £30,000.
Comfortable: Individual needs an annual income of £33,000. A couple needs £47,500
Can I use my pension to buy property?
Withdrawing from a pension to pay for a Buy-to-Let property is an idea on the rise with data showing that nearly £2.4 billion has been cashed out by savers. Usually at the end of most pensions there is a lump sum payout. With these funds, you’re able to spend or invest as you please.
A poll by YouGov discovered that 30% of respondents aged between 45 and 54 said they were considering accessing retirement funds to purchase a Buy-to-Let property.
Can I get a Buy-to-Let Mortgage when I’m retired?
As BTL mortgage payments are usually covered by the rental income rather than a work income or pension it is possible to get a mortgage in retirement. Lenders will certainly vary. For example, will not allow a mortgage to run past 70. A 60-year old, however, could still take out a 10-year mortgage and clear the debt by selling the property.
As with any investment, using a pension to buy a property depends on the investors aversion to risk. While it can deliver quality returns through rental income and natural market growth, it’s arguably a better choice to invest earlier, allowing the property to maximise returns in preparation for retirement.
