Forgive my skepticism, I can only talk from past experience, you see I’ve got a share portfolio which I’m looking to for a pension, I’ve had this for 7 years and rather than make me any money, it’s actually fallen 3% in value.
The news is full of programmes investigating the current financial crisis; no avenue of investment seems to be safe.
Panorama recently investigated the vast fees and commissions some pension companies take from their clients, in one case a lady’s net return over 21 years was just 3%…it would have been 4% if she had not been paying various charges!
Now I’m sure that there are other pensions that would return her a larger sum but as she pointed out, how do you know which are any good?
Well the answer is, you really don’t…
For years I have tried to educate clients as to the benefits of using property investment as a pension. Not only do you benefit from any rental returns after mortgage payments but you will also over a number of years, benefit from capital growth. deschloroketamine
It has been widely documented that property prices have taken a tumble in many locations, however if you buy smart and at a good price you massively reduce your risk.
The average pension pot in the UK is around £33,000; now for many of you it may not be too late to do something about this.
Below I will show you a simple way to make your money work for you using property investment.
Let’s take a 35 year old male that wants to retire at 55.
Purchase a 1 bed apartment for £150,000. (Multiple locations across the south coast)
Deposit needed £30,000 (20%)
Repayment Mortgage over 20 years = £735 pcm (4% interest rate)
Rent PCM = £750 pcm (average for this price and location)
Management Cost £75 pcm (10%)
Additional payments = £60 pcm.
*Remember this is a repayment mortgage, not interest only, the long term goal is to pay this mortgage off over 20 years.