Pension changes sees interest boom in the buy-to-let market

With pension regulation changes now in effect, Petty’s is already seeing a boom in interest in the buy-to-let market.

New regulation now allows people aged 55 and over to access part or all of their pension pot and as this comes at a time when stocks remain volatile and interest rates remain low, the prospect of owning a rental property becomes all the more appealing.

This is set to increase widely as the move to own a rental property, which not only provides a regular income but which appreciates in value, is now being considered by many as an alternative to a more traditional pension fund by the so called, ‘Silver Landlord’.

However, whilst the attraction is clear, I would encourage people to take heed of one piece of advice and that is to gather your facts first. It is vital to understand that any property purchased for rental purposes needs to be treated as the investment that is and that all the legal requirements that come with that are understood and adhered to.

Before signing on the dotted line, do the research and speak to the experts. They can guide on locations that are worth investing in, history of rental properties in the areas and also the yield you can expect based on their vast experience to make sure the sums add up for you. It is also imperative you decide how involved you want to be too as this is not to be viewed as a passive investment. Again, experts offer fully managed serviced so you can reap the rewards of your investments without the worry of legalities and the endless demands from tenants.