Buy to Let Investment Market Proves to be Popular Choice for Retirees

22 July 2012 Categories: News

Buy to Let Investment Market Proves to be Popular Choice for Retirees

According to a recent poll conducted by insurance provider Simply Business, the number of landlords aged 65+ who are opting to purchase landlord insurance has increased by more than 11% over the last 12 months; an indication that retirees are starting to opt for buy to let investments over the traditional annuity.

It’s no secret that annuity rates are at an all-time low, and experts predict that over the coming year they will drop further, so it’s no wonder that retirees are looking for an alternative form of income to support them during their later years.

Chief executive of Simply Business, Jason Stockwood, recently said that more people entering retirement are understandably looking for a way to generate a better income, and with the buy to let market being as strong as it currently is it is no wonder they are starting to look there. He also said he can fully understand why an increasing number of retirees are now opting to rent out their own properties while downsizing themselves.

Industry experts have warned amateur landlords, and especially those who will be relying on the income from a buy to let investment, to be aware that data released by property services and mortgage companies can be misleading, as they rarely take costs such as void periods and rental arrears into consideration.