We are finding that
we are increasingly dealing with first-time landlords who are looking at
property as an alternative to, or to run alongside, a pension scheme. Landlords
can currently look to achieve average gross yields of around 5% in Exeter and
if bought in the right area, they can then hope to sell the property for a
profit. Capital appreciation is an important factor to take into account when
looking at Buy to Let.
Many people turn
to the property market for long-term investments when gains from other
investments are not proving fruitful. In the current climate we are seeing a lot
of new landlords because they are not getting the returns from the traditional
stock market or bank investments routes.
A property is a
tangible asset, which many people like, and the combination of income and
capital growth is attractive to most – whether a landlord wishes to sell on
retiring in 10, 15 or 20 years, historically property prices have risen over a
significant time-frame. You have to be prepared to weather the storm with the
property market and works better when you invest for the long term. If the
property market does take a hit, providing you hold your nerve, you could still
come out of it at the end with a profit.
I would suggest
that when people are thinking about their future and retirement that it’s good
to have your money invested in a variety of ways and not purely rely on a
pension. Investing in property is another option that should be considered.
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