Buy To Let Property Becomes The New Pension Fund

18 November 2012 Categories: News

Buy To Let Property Becomes The New Pension Fund

Research carried out by BDRC Continental has shown that the vast majority of landlords and buy to let investors see their property portfolios as their retirement fund. The research showed that 80% of landlords see their property investments as their safety net for retirement, while more than 60% plan to live off the rental income they receive from their properties during their retirement.

When asked how they saw their buy to let investments helping during their retirement years, 20% said they were planning to sell a few of their properties to generate a cash lump sum. Another 5% said they intended to sell their entire portfolio while nearly 40% said the property market at the time would dictate whether they sold or not.

With pensions and annuity rates being at an all-time low it is no wonder that most landlords and property investors feel the buy to let market is a better investment than savings, bonds, shares and pensions.

Mark Long, director at BDRC Continental, commented, “Landlords consistently tell us that they see their property portfolio as forming a critical part of their pension provision for the future.

“On average, landlords intend to remain active in the rental sector for another 15 years or so, and see a combination of capital gains and rental income as underpinning their pension strategy.”