More than four in ten landlords have chosen to rent out properties in a bid to raise as much money as possible for their retirement.
A new survey conducted by the Property Investors Network (PIN) found that 42.4 per cent of landlords said that they bought rental accommodation to cover their pension pot, while 49 per cent admitted that it will provide a major part of their income in the future, reports the Dover Express.
With many people known to be getting a bad deal from more traditional investments and annuities, renting out a home can be a more appealing option.
Simon Zutshi, founder of PIN, said that there has been a loss of faith in certain financial institutions, leading many to believe that investment in bricks and mortar is the best way forward.
“The tales we’ve heard in recent years of highly paid bankers being utterly reckless with the futures of many, plus other tales of woe by those looking after our money, shows that the public should be entrusted with more control over their futures and self-invested personal pensions should allow residential property as part of a solid portfolio,” he explained.
Mr Zutshi went on to note that state pensions are “on the decline” and private pensions are generally not being invested in as much as they should be. This is causing a gap in the amount of money available to people in later life.
By investing in property and renting it out to tenants, people can be assured of a regular income. As long as it exceeds any mortgage payment they need to make, they will have some cash to put away each month towards retirement.
The performance of property has been impressive and gives individuals confidence they are safeguarding their future by acquiring it at the current time, Mr Zutshi noted.
Published on: March 7, 2014