With the changes in pension regulation being implemented in April 2015 those approaching retirement and existing pensioners will have more flexibility in how they access their retirement funds. As a result there could be an influx in the number of ‘silver landlords’ entering the private rented sector and opting for a buy-to-let property over a traditional pension fund is something that a high percentage (32%) of people aged 45 – 64 would consider, according to research by Direct Line for Business.
The rental property market is a highly attractive one as property prices and rental income continues to rise in the UK. This combined with the fact that tenant demand outweighs supply presents a sound investment for those wanting regular income and a medium to long-term investment pot. It also presents a favourable option as this demographic would like to invest in something that can be left as a tangible inheritance for their children.
Despite the perceived security and relatively high return on investing in property prospective landlords should be aware that it is not without financial risk and expenses such as legal, management, maintenance or even damage costs must be accounted for. However, taking out landlord insurance or seeking advice from experts can help minimise the risk.
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