The buy-to-let safety net
Property investment isn’t just for the younger or middle-aged generation; it’s a popular asset within the older generation too and even more so now that pension shortfalls could be on the increase. This has resulted in the older folk joining the buy-to-let property market to create a secure income for the future.
Auctioneers and property consultants Allsop and market researchers BDRC Continental’s recent report has indicated that 78% of all landlords view the property investments as a secure pension fund. This statistic is on the increase, as more and more people are searching for safety nets to protect them from financial difficulties in the future.
It was also revealed that buy-to-let property investments are a “viable, long-term investment because of stable rents, increased income security, capital gains and long average tenancies”. An average tenant would remain in their rented property between two to three years.
Another reason why property investment has become a keen interest for the older generation is so they can build financial security for their families, as well as provide accommodation for the younger generation who are unable to put a deposit down on a house/ flat. Head of research at Hamptons International, Jonny Morris stated that “83% of those who own their homes outright are aged 55 and nearly all housing debt is owned by the under 55s.”
The buy-to-let property investment market has continued to increase over the last two years. Spring 2012 witnessed a 2.3% of its Chelsea buyers choosing properties to let and in 2014, this figure rose to a staggering 26.2%. Head of lettings, Zoe Rose said “There has been a real surge among older people wanting to buy-to-let, not looking for the increases in capital value but driven by the need for rental income or cash flow.”
The Financial Times has marked it as a crucial time to jump on the buy-to-let property investment market and we do too.
For more information about how you can join the property investment market, get in touch with us today.