Investing your pension in a buy to let property
From next April everyone over 55 will be able to spend their defined contribution pension pots. Many are speculating that the move will create a surge of investment in the buy-to-let market as retirees becoming landlords.
If you’re thinking about investing your pension in buy to let here’s 1LET’s quick tips on what to think about first:
1) Remember that it’s an investment, not a second home - look for a property in a good location that will appeal to a wide range of people not just you.
2) Think about a shared purchase. Split the responsibilities and the risk with a close friend or family member.
3) Don’t tie up your entire fund in property! As with every investment spreading around your assets is the safest way.
4) Remember that being a landlord is a lot of work! While it can offer the security of savings with good returns it’s not easy. Choose a trusted lettings agency to manage it for you. Search online reviews before making a choice! Read Google reviews and the reviews on allAgents to help in your decision.
5) The best investments tend to be ones that require a little tlc to get them up to scratch. Typically they’ll be less expensive and can be improved relatively inexpensively.
Always remember that every investment requires serious thought and a great deal of consideration.