The Property Ombudsman

Property continues to outperform pension returns

A leading industry figurehead has recently stated that property is still the best investment option for retirement.

The Bank of England’s chief economist, Andy Haldane, has expressed his opinion on the longstanding pension vs. property debate and has announced that pensions are not the most appropriate solution for those who want to save money and fund their future. Speaking out to the public earlier this month, Mr Haldane, who is a buy to let investor himself, stated that “pensions ought to be the best option for retirement, but it’s almost certainly property”.

His statement is based on ongoing research that the returns made from buy to let investments will far outweigh those made from pensions, annuities and cash ISAs. Taking into account both rental yield and capital growth, investors who purchase property in the right locations can benefit greatly from rising house prices and monthly income.

Mr. Haldane also stated that over the next few years, the UK should “expect to see what we’ve had for the better part of a generation, which is house prices relentlessly heading north.”

Graham Davidson, managing director of Sequre Property Investment, commented on the recent announcement:

“Poor returns, hefty fees and inconsistent annuity rates has caused the number of Britons taking out pensions to fall considerably. As Mr Haldane has pointed out, bricks and mortar continues to out-perform many other more volatile investments, providing stable returns with the added benefit of owning a tangible asset, unlike stocks and shares. This is particularly important for the older generation, many of whom will look to hand down their investment to family members.

“Figures from Sequre support Mr Haldane’s claims, with 46% of our investors citing investing for their pension pot as their primary motivation for choosing buy to let property. Even those who invest primarily for the returns and secondary income for today, 95% still cite future retirement income as a key consideration. Those looking to make their money go further should look to Manchester, where the market offers high yields of up to 7.5% and long term capital growth.”

If you’re interested in purchasing a buy to let property in order to fund your retirement, contact Sequre today. Our expert team can guide you through the buying process and offer help and advice on your investment choice. All the developments we source are negotiated at a discounted rate, which means you won’t find deals like ours anywhere else on the market. To find out more, call us on 0800 011 2277. 

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