Pension Landlord by Heather Hilder on August 20, 2019 “Landlord Tribes” Pension Landlord The archetypal multi-property “professional” Landlord probably only accounts for about 50% of all landlords. Here we look at the Pension Landlord. The rest come in all shapes and sizes: The “Accidental Landlord” The “Parent Landlord” The “Inheritance Landlord” Traditional pension investment schemes have proved unreliable, especially as the capital value can fluctuate wildly. Share prices and dividends can rise or fall on a whim, often completely unexpectedly and some pension schemes, following years of contributions, have folded without notice. A reliably performing pension scheme is such an important aspect of long term financial planning that many people invest prudently where capital is relatively secure but yields are low in return for a lower risk investment. Property, however, has historically outperformed all but the highest risk share indices. Indeed bricks and mortar have always been regarded as excellent security. A buy-to-let investment usually provides a complimentary combination of capital growth and a reasonable yield, typically of circa 6% pa. Unlike most shares, you can leverage your property investment with a partially tax-off-settable mortgage. Effectively you borrow the bank’s money cheaply, and ideally see a much greater return from yield and capital growth. Property Pension A “property pension” is certainly a long-term investment plan, but is highly attractive to those in their 30s and 40s. When held in a tax-efficient pension “wrapper” it becomes even more attractive. But do speak to a specialist tax adviser on that point. If you are currently weighing up the pros and cons of selling versus renting, it might be worth asking us to help you consider the merits of both, so you can make an informed, convenient and profitable decision. Are you a Pension Landlord? We’d love to hear how you started your journey. In terms of the right property at the right price, with the right tenant paying the right rent, then speak to us! We’re at the end of a ‘phone line on 01273 735237 or contact enquiries@callaways.co.uk.
