How property as a pension stacks up [Video]

I believe that property as a pension is a great way to boost your pension income and add another asset class to your investment portfolio. I believe that everyone should plan for retirement and have a pension scheme, but we need to be clever about it in order to make up for our under-performing pension pot.

So how can we leverage property as a pension vehicle? Property sits out side the stock market, so it isn’t related to performance. In addition, interest rates are extremely low so you can get some great mortgage deals especially if you have the funds to put down as a deposit. We are anticipating inflation rate rises this year, which as a property investor is to your benefit as it helps to erode your mortgage debt. Combine this with any rental income you receive over and above your mortgage payments, it offers a great investment option.

Property is a great investment – our population Is growing and we have simple fact of supply and demand, and add to this that people are living longer, the demand for rental property is increasing daily and this will continue to put pressure on prices, driving them up. The house market does go up and down – as we know it’s gone down in recent years, and lending criteria is now very strict as a result of the credit crunch, but if you have the money to invest the property will never drop to zero value, which stocks can do. In addition, you will be able to leverage the cash flow from your property investment – putting food on the table and paying for everything you need in retirement.

Tenants pay the mortgage for you, providing an income that you can use to pay into a pension, and this rental income will most likely increase with inflation and supply and demand. On the flipside, with an annuity pension your income is level or going down every year and you will have less money to spend each year as prices rise and you receive the same income. Rental income lets you increase the rent with supply demand and inflation, and someone else is paying the debt down for you. It’s a different way of getting income into your pot – annuity rates are irrelevant – you have an income stream coming in from a route not affected by stock market.

Therefore property is a great way to supplement or replace your pension, it’s a much more flexible and safer bet. I have a pension, and believe that everyone should have a pension, but it’s a different asset class. Don’t put all your eggs in one basket.

When you pay into a pension, and think about putting extra in, that’s when I believe you need to consider property. It could give you the extras in life.

Listen to my audio about property as a pension.

Contact me for impartial advice about property as a pension. I can look at your circumstances and advise on the best way to ensure you have a safe and secure retirement that you can truly enjoy.

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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  1. Property as a Pension | Gill Alton | Listen to the Audio - November 22, 2012

    [...] Read my blogs on pension annuity and how property as a pension stacks up.  [...]

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