Property Investment Can Save Your Pension Part 2 [Audio] | Gill Alton

In this second part of the “Property Investment Can Save Your Pension” interview I talk about how you can take your first steps to go from a complete novice to someone who feels comfortable to invest in property as a pension vehicle. I understand that it can be daunting for people who want to have a financially safe retirement but don’t see themselves as property entrepreneurs.

I work with people who are in their 40′s and 50′s and help them to use property investment as a vehicle for a pension rather than going into property as a business. I also talk a little about how I have put my knowledge and strategies into a new book, which I will be releasing soon.

Listen to Property Investment Can Save Your Pension

When people start in the property investment game early and have a pension, then they should continue to pay into that pension. However, many don’t have a pension, or started paying in very late so need to supplement their pension with property. I strongly believe that property investment can save your pension.

For those with no pension, their first step is to look at a retirement plan and think about property investment as a retirement vehicle.

Working with people in their 40s and 50s as they are what I call ‘financially stable’, I understand where they are financially, and if they have equity in their home they can make this work for them. If they live in a home with no mortgage, this still won’t pay the bills so they still physically need money to come in. The home we live in is a liability – whereas if you invest in property this can be an asset.

So the first step is to look at how much people have to work with. How much do they have in savings? It’s worth noting that this money sitting in a savings account isn’t working for them, and therefore they aren’t making anything on this money. If there is equity in their home this can be made to work for them.

If you are going to invest in a pension, you are handing over your hard earned cash. If you are going to invest in property you will need to spend money, so either option will require funds and that’s why it’s better to be an established investor.

In my up and coming book I look at options of interest only mortgages and your repayment mortgages. It’s imperative that you have an exit strategy if you have an interest only mortgage.

Although the market has been struggling many people still have equity that they can make work for them. The idea really is that if you are serious about getting to a point where you retire and have the money to enjoy your retirement, then at some point in your life you will possibly have a job, equity, savings and need to seriously look at the way in which you can leverage this cash and actually make it work in a sensible way for retirement.

When our mortgage business, Alton Mortgages, suffered in 2008 we knew we could get money out of our home as we had equity and had to move quickly. Banks use your books to assess what you can borrow so it was imperative that we had good accounts – which we wouldn’t have had if we had left it a year!

So we took this money and invested it in property that gives us monthly cash flow in the short term but in long term the houses will have capital growth and will pay those mortgages down. We choose to overpay and in my forthcoming book I talk not only about about repayment mortgages but also about overpaying and using inflation to help reduce the mortgage debt.

If you keep the equity in your home it’s not helping you other than you aren’t paying the mortgage on your home, it’s not making you anything. There is a point where you have to do something, and this is why I believe that property investment can save your pension and get you to a point where instead of downsizing you can be much more clever about it and achieve the retirement strategy that will work for you.

Even if you are equity rich you can have no income and not enough to live on – which just doesn’t seem right as you need to make this money work for you. You may have heard the saying “Asset rich but cash poor”.

Wanting to be a property investor and being a property investor are very different things – and it’s a big step making the transition between the two. You need to be sensible and methodical in your approach, and so your property can outperform your pension.

People will have a big shock coming in the next 18 months as there are changes happening with pensions, but the way buy to let property investment is promoted is that it’s really risky.

Actually it’s not if you do these things outlined in my book. Investment in general is risky, but you can minimise this and have the control and this is what I want to get across to people. I want to help people to make informed decisions and have a sound property investment strategy, thereby salvaging their retirement plans and hopes.  There are many people heading towards an unhappy retirement. You don’t want to get to 65 and be without options because you have left it too late.

For more information on how property investment can save your pension or if you just want to talk about how to create a sound property investment strategy, please call me at Alton Property Partners on 01628 560 821 or arrange a call back

Property Investment Can Save Your Pension Part 1

Gill Alton

Connect with me: Google+
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.

More PostsWebsite

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

Leave a Reply