According to a recent report, 'Silver landlords' investing in buy-to-let property to boost their pension income have grown in popularity.
The research shows that one in ten over 55s owns a buy-to-let and that the average property, owned by the over 50s, now brings in a profit of nearly £700 a month.
The research also reveals that a third of buy-to-let owners aged over 50 became landlords within the last five years. Nearly half of those surveyed had purchased property for the purpose of renting it out. One in seven inherited it, and one in 14 had purchased a property for a younger family member – a child or grandchild – to live in.
Many over 55s can become landlords and generate more income, through rental payments, averaging £806 per month across England. According to Armistead Property, investing in property for family members, or buy-to-let, can bring great returns in terms of capital growth and rental income.
Peter Armistead of Armistead Property comments: “Property can be a wise investment for the over 50s. The buy-to-let market conditions are very good at the moment with rising rents, a shortage of properties and increased tenant demand. Add to this capital asset growth as property prices continue to soar in many parts of the UK, it easy to see why buy-to-let is so attractive.
Manchester, where I have successfully invested in BTL property, is a great place for investors because of the excellent return on investment. An average residential property in the City is just £155,000, while a flat in a good area, costs as little as £120,000. It’s not surprising that many investors, especially from the South, are targeting Manchester and are reaping the rewards.
A property in Manchester can provide a 5% minimum cash rental yield and a typical 12% total cash yield, including 7% capital appreciation. Demand for rental accommodation is strong and by comparison with other regions and housing is cheaper.