Are you treating your buy to let investment portfolio as an extension of your pension plan for retirement? If so, then you are not alone and a recent survey of landlords in the UK found that many were viewing their properties as another source of income for their retirement. Indeed, many actually intend on living off the money generated from their buy to let properties.
Are buy to let properties a good retirement investment?
Given that around 80% of landlords questioned believe so, the answer is probably yes: a buy to let investment portfolio is definitely a good alternative to a poorly performing pension plan. Interest rates at the moment are diabolical. In fact you would be better stashing your cash under a mattress rather that waiting for it to collect a meagre few pence in interest from a savings account. So investing in property that can generate a steady income is probably an excellent plan if you have the money to spend.
But even if you are lucky enough to have a fairly decent pension plan, you can still use the income from buy to let to supplement your pension, which is what 20% of private landlords are currently doing. And if you find that you are short of cash at a later date, you can always sell one or more of your properties and release some equity.
Buy to let yields have never been so high, so now is an excellent time to consider investing in the rental market—although some areas of the country are out performing others and a bit of research is essential if you want to maximise your profits.
