Andy Haldane is a chief economist for the Bank of England and in a recent interview with the Sunday Times says “I believe that property is a better bet for retirement planning than a pension. It ought to be a pension, but its almost certainly property.”
Chief Economist Andy Haldane says that pensions are too complicated and property is better due to continuously rising prices.
In the interview with the Sunday Times, he says ” As long as we continue not to build anything like as many houses in the country that we need to … we will see what we’ve had for the better part of a generation, which is house prices relentlessly heading north”.
Mr Haldane is 49. His basic salary is £182,000 and he is in line for a pension of more than £80,000 a year when he retires. In the interview he said that he didn’t consider himself wealthy. ” I see myself as not having to worry about money, but plainly not wealthy. I never have, and never expect to in this job”.
He owns 2 homes, one is Surrey and a holiday home on the Kent coast.
So, what properties make a good Buy to Let investment? Some investors purely look at yield – that’s the function of rent against purchase price. However, some will also consider the capital appreciation of the property over the lifetime of ownership. Some properties are more saleable, and so will increase more than the average for that area. Also, an investor may consider buying a property in need of some modernisation, as that initial capital outlay, may cause greater appreciation in value of the property.