Passive Income in Retirement

Speak to one of our trusted investment consultants for opportunities for property investment in retirement.

What are the best properties for retirees?

The best type of property in which to invest depends on your individual circumstances, and depending on how far into retirement you are, what you hope to gain from your investment.

If you’re investing ahead of or just at the start of retirement, you might be looking to invest, first and foremost, in a property for capital gain. Therefore identifying properties that are most likely to appreciate in value in the longer term will hold more appeal. While there are no guarantees as to where prices will head, properties in locations that are receiving substantial investment, such as major infrastructure projects or key city regeneration zones, are more likely to see an upturn in both house prices and rental values.

However, for some mature investors, the focus may be on securing regular rental income, so a location with established tenant demand will be important. Consider places close to good transport links and large employers, such as universities and hospitals, where there is a ready-made market.

Consider also what type of property is likely to be in the higher demand and by who. If you’re buying in or close to a city, then apartments may be the most sought-after properties and, depending on the area demographic, it may be that a property suitable for sharers is the best buy.

What yields can you expect?

Typically, rental yields sit around the 4-5% mark. However, you can achieve returns as high as 10% from the most desirable properties in up and coming locations. For those looking to build a property portfolio, it can be wise to invest in several different locations with a mix of established and up and coming locations.