Landlord News

Property Investments to Form Retirement Funds

It has been revealed that a solid property portfolio could act as a retirement fund for many investors and they believe that, due to confidence in the economy waning, their property portfolios will form an important part of their post-retirement income.
 
The National Landlords Association (NLA) has carried out research to reveal that 81% of landlords expect to rely on their property investments to assist them financially when retiring.

This news comes after it was revealed that the amount of savers contributing to pensions has declined by 8% in the last ten years; the figure now stands at just 38%.

The survey carried out by the NLA found that the confidence in the economy has significantly declined amongst landlords, and David Salusbury, Chairman of the NLA, has been quoted saying: “Landlord confidence in the financial market is at an all-time low. This, combined with record low interest rates, means that many individuals are looking for alternative ways to secure their financial future.”

He then went on to add: “Private residential property can be a sound long-term investment for those planning their retirement. But potential landlords must realise that letting property is a lot more complicated than contributing to a pension.”

Mr Salusbury concluded: “Becoming a landlord is just like starting any other small business. Anyone considering using property to bolster their pension plans must make sure that they put together a long-term business plan, taking account of the various regulations governing the letting of property, as well as their responsibility to tenants.”