Reports of schemes providing little or no return has long been common knowledge and it now seems that traditional methods of preparing for retirement have been quashed in favour of investing in bricks and mortar in the hope of it delivering a substantial residual income.
Not only do homeowners anticipate their residential dwelling to form part of their future retirement income, a large majority of aspiring landlords are also using the low property prices to their advantage by acquiring more properties in a bid to ensure their pension income is at its maximum.
‘The viability and sustainability of using property as a pension has much been debated, especially when you consider how much the market has changed over recent years.’ explains Warren, editor of news website Property Reporter.
‘Whether people are relying on selling their residential home or anticipating rental income to get them through retirement, if the market is the same as it is today then they’d possibly be in quite a comfortable position. House sales are continuing to improve and rental demands are at an all time high; however, it’s realistic to say that the market won’t always be like this.’
‘No investment is without risk and although people seem comfortable with this method due to it being a tangible asset, it does have the ability to deliver a poor return should house prices fall at the point of wanting to cash in on their investment.’ continues Warren.
The potential risks haven’t deterred the 80% of professionals who took part in a survey commissioned by Property Reporter who confirmed their plans to use property as their future pension income; just 9% confirmed that they were relying on traditional pension schemes and 11% remained undecided about future plans.
