Downsizing to enable you to use property as a pension

Many retirees are buying homes that are on average 36% cheaper than their current home, and many are looking to buy properties that are at least 50% cheaper, therefore using property as a pension, or as part of their pension planning. This could mean that homeowners raise approximately £186 billion towards their retirement.

Research by Castle Trust has shown that approximately 3.25 million households plan to downsize their in order to fund all or part of their retirement.

Property really is a great investment strategy for retirement, however relying purely on your residential home to provide for your retirement income is a risky option. From our own family Mortgage Business we know that when it comes to it people often don’t want to leave their home and downsize, particularly if they are relying on taking a big step downwards. Unless the family home really is way too big and in a very sought after location often the move to a property which is ‘older age friendly’ and offers the amenities required as you grow older can be too close in price to your family home to release the significant equity required to live off in retirement.

To release chunks which are big enough to support your for many years can mean taking bold steps and purchasing 50% lower, which as we can see from this survey only equates for 11% of those surveyed.
However utilising property as a pension, or as part of your retirement planning becomes really powerful when you have income coming from an investment property. This is a property which produces positive cash flow for you each and every month. Your family home is not such an asset, as it represents a liability as it costs you money.

Investing for cash flow is the focus of the wise investor who understands the benefits that property investment offers. Benefits such as an income which can rise over the years with inflation, an asset which can increase in value over time and ‘good debt’ which is paid for you by someone else (the tenant) and its value is eroded by inflation.

Investing in property, other than your home, provides you with options when you come to retiring. And this may mean you can stay in the home you love longer, or move where you ‘want to’ instead of where you ‘have to’.

If you would like advice about downsizing or using property as a pension or part of your pension planning, contact me, Gill Alton, at Alton Property Partners.

Gill Alton

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Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for investors in the UK.

Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market.

The service is specifically aimed to support those who recognise the value of a UK investment portfolio, but lack the time, or knowledge to be able to invest for themselves because they are full time employees or Business Owners. With full consultation and comprehensive financial analysis, clients can be assured that their portfolio of strong yielding properties will be built to exacting standards and they will be kept up to date every step of the way.

Having been involved in property for 16 years Gill has built a personal portfolio for her family, and in addition to Alton Property Partners, runs a Property Mentoring Business, Venus Property Mentoring which focuses on supporting new investors onto the investing ladder. Having originally left the Corporate world to be a Qualified Mortgage Broker, Gill’s husband now focuses on their family Mortgage Brokerage in Maidenhead – Alton Mortgages.

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Alton Property Partners
6 Bramble Drive, Maidenhead BerkshireUKSL6 3NX United Kindom 
Gill@altonpropertypartners.co.uk •0845-095-5060

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