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Monday, 3 April 2017

Could A Buy-To-Let Property Help To Boost Your Retirement Income?

English: 60 Richmond Street East, an affordabl...According to research by Simply Business, increasing numbers of people have been turning to property to boost their retirement income since 2012. Growing property prices and profitable rental yields offer an appealing alternative to traditional pension plans and their analysis of 300,000 insurance policies showed a 43% increase in the number of female retiree landlords between 2009 and 2012.

Money from company and private pension schemes is inaccessible until retirement age and returns are often uncertain as they depend on investment performance. Despite a government scheme to automatically enrol individuals into workplace pensions, experts are still sceptical, suggesting that minimum contributions are unlikely to make retirement living a comfortable proposition.

With many landlords making lucrative rental yields, a buy-to-let property could provide a much-needed boost to your retirement income. The current economic climate has resulted in a surge in demand for rental accommodation. Due to the difficulty of raising mortgages, this increased reliance has seen growing competition for prime rental property, pushing up prices and ensuring high occupancy rates.

Buy-to-let requires both an investment of time and finances

While property may seem to be the perfect investment proposition, it’s important to bear in mind that managing property for rental purposes is a demanding enterprise. Although an appealing prospect, managing the day-to-day running of a rental property may not make for a relaxing and restful retirement. It involves a considerable investment of both time and money to ensure consistent levels of income. Periods of vacancy can reduce rental returns and some tricky tenants may provide more work than financial reward.
However, there are ways to reduce the workload of managing a buy-to-let property. In return for a percentage of your rental income, the services of an agent can cover everything from advertising your property and finding suitable tenants to completing repairs and collecting rent on your behalf. Although this may reduce your workload, the role of the landlord is still not without risk.

Utilising a fully-managed property scheme could offer a number of benefits

One hassle-free and risk-reducing alternative to managing your own buy-to-let business is investing in a fully-managed property scheme. Investing in a fully-managed property opportunity negates the need for any personal management involvement and removes the hassle of tenant procurement. Experts Vita Student can help ensure your investment property will be in a prime rental location. They research the ideal rental market and build purpose-built complete developments in key areas, eradicating both your workload and the worry of choosing the appropriate property.

Rent arrears and vacant periods are potential concerns with any buy-to-let property. If you’re going it alone, it’s essential to consider a contingency fund to ensure that you’re covered in such circumstances. Similarly, if rental prices fall and securing tenants becomes tricky, you may be at risk of owning an asset that no longer supplies a retirement income.

However, a fully-managed scheme can vastly reduce this inherent risk and may provide the peace of mind of an assured rental return for the foreseeable future. Managed schemes offer investment in a secure and safe asset class, promising property in a prime location with high occupancy levels and lucrative rental returns for investors. An assured rental income provides protection and reduces a wide range of the common risks associated with being a landlord. Why not consider a secure property investment without any of the hassle and enjoy a consistent income for a comfortable retirement?

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