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Planning for the future: When Property prices rise and fall, is property a real investment?

 

graph about house prices in 2015

Will the  “Government’s Pension revolution” fuel a further increase in property prices? Since April, Pensioners are able to release their pension pot in a lump sum. Will pensioners decide to pay off loans, buy new cars or INVEST in property. Evidence from Australia where pensioners have been able to do this for sometime usually shows they pay off loans and invest, rather splash out on new cars and holidays. If this is the case will this increase prices further?

sailing boat in St.Lucia

 

Each individual will need to seek professional advice,( from a tax adviser and mortgage broker)but the attraction is clear: invest in property, with rents continuing to rise or deposit in a savings account, currently in most cases seeing a decrease in rates.

 

 

Why think about a Buy to Let sooner rather than later?
The BBC produced figures that those just starting work could see their working life stretched to the age of 72 before they can claim a state pension and a child born in 2014 could expect their working life to go on until the age of 77. So choosing a Buy to Let scheme could help you achieve great control and flexibility over your retirement age. The majority of buy to let mortgages require a 25% deposit. If it is affordable, a Repayment mortgage rather than an interest only mortgage adds further protection to the rise and fall of property prices. The rent will be paying off your mortgage, so that at your chosen point you can either, sell the property to release cash funds or use future rents as a retirement income. For this reason it may be beneficial to invest in smaller units which can be sold at different times, rather than a larger unit.
Wish I had done this 20 years ago.

Lorraine Thomas

Founder at Malcolms Estate Agents
I hope my blogs will always be of interest, informative and for the most part light hearted. Over the years I have seen the strangest of events affecting the property market and my blogs will generally be about seasonal, political or current social trends affecting house sales.

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