With a lot of pension plans not worth much these days, it is hardly surprising that many landlords view their buy to let property portfolios as a way of funding their retirement. In a recent survey, the results showed that around 84% of landlords questioned entered the property rental market with a view to boosting their income upon retirement. And who can blame them?
Rental income from property
A further 60% said they intended on living off the income from their investment portfolio instead of relying on a pension. Some even went as far as saying they had made no provision for their retirement and therefore their properties were their pension, in which case they would probably sell up once they retired completely.
Is the rental market still strong?
Demand for rental properties remains as high as ever. The number of tenants falling into arrears is falling, as are void periods, which is always good news for landlords. Although there was a slight dip in rental yields towards the end of last year, on average property investors can expect to see a 6.2% in rental yield under the current conditions, which is considerably higher than any savings account you might find on the high street.
Is property investment a good retirement plan?
As long as you manage your investment carefully, investing in rental property makes good sense for those who have spare money available and wish to boost their pension plan. However, returns on investment do vary greatly across different regions of the UK.
