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  • Should you invest in property in retirement?

    For many of us, retirement is a welcome opportunity to relax and enjoy the fruits of our labour, but that doesn’t mean we don’t want a project to get stuck into. For some people, this is a part time job, or a chance to get involved in a new hobby. However, for a growing number of retirees, the answer lies in property investment.

    Investing in property isn’t just a great project, it can also lead to serious financial gain by dipping into your retirement funds in the short term. Some people choose to purchase a property, refurbish and sell it on for a profit, whilst others choose to go down the buy-to-let route.

    Buying to let in retirement means you’re more likely to have the time and funds to make the most of this opportunity. But if you do decide to buy to let, you need to make sure you’re doing it as effectively as possible.  Here’s all the information you need about investing in property in retirement.

    When is a buy to let investment right for you?

    A buy to let property investment could be the right option for you if you like the idea of becoming a landlord to tenants and are looking for a way to create an income for yourself in retirement. It can also be a great option if you prefer investments which are more tangible than stocks and shares, and are willing to tie up your money for a long period of time.

    Investing in property is for people who aren’t afraid to take a risk. You need to understand that property prices can go down as well as up and you need to be willing to take the risk that you might not earn a significant profit on your investment if circumstances change for the worse. You also need to be willing to invest a lot of time into owning and running a property, and understand that this will have an impact on your schedule and daily routine.

    However, property investment is also a great choice if you want to immerse yourself in a new community. Unlike a part time job, property investment puts you in charge of your own schedule and actions, so even though you have responsibility you also have the flexibility to complete tasks as you see fit.

    The questions you need to ask yourself before investing in property

    If you have decided that investing in property is the right option for you, there are lots of other elements to factor in before you commit to a particular property. The questions to ask yourself before embarking on buying a second home are:

    • How much could you earn in rental income? Be sure to do your research and seek out a professional valuation
    • Will you have enough capital to pay the rent for any time the property isn’t occupied?
    • Will you let the property furnished or unfurnished?
    • Are you looking at local properties or further afield?
    • Where will the money come from? For some, this involves dipping into your retirement pot. For others, it may involve selling other assets. Where there is a gap between the selling of assets and purchasing of a new premises, bridging loans from companies such as Glenhawk can offer a fast and effective solution.
    • What is your plan of action if something goes wrong at the property?
    • Will you pay someone to manage the property for you?
    • Have you considered the other payments involved in property investment? These can include stamp duty, solicitor fees and utility costs among others.