Property As A Pension

13th Jun, 16 Property As A Pension

Although many people are unaware of it, property as a pension is a real alternative to the traditional stock market-linked pension fund.

Property as a pension allows you to take control rather than wait for forces outside your control to alter your investment in your future. So the question is Property or Pension?

Everywhere you turn at the moment we hear in the media that there is a shortage of housing, monthly rents are going through the roof, interest rates remain at an all time low and mortgages are harder to come by.

These circumstances do have down sides for some. For example if you have savings you are earning very low returns currently, even in ISA’s. However this has also created the perfect storm for the buy to let investor.

Property investment is not for everyone. We speak to many who would love to benefit from the incomes but have no desire or will to manage the purchase or rentals. At Property Investment Advice, we can talk you through your property or pension options based on what outcome you are looking for.

These are 4 reasons that, here at Property Investment Advice, we believe property is a great pension alternative:


  1. Income for NOW – as well as retirement.
    With a pension you can only cash in once you reach the magic age – in itself a moving target these days. If you purchase a property for rental you will start earning an income as soon as your property is let. Enjoy returns on your money now as well as after your retirement. In addition with capital growth on your initial investment you could also enjoy additional further capital growth even after you retire.
  2. Avoid being a slave to the volatile and under performing stock markets
    Most traditional pension funds are strongly linked to the stock market. The under performance of the stock market over the last few years has left even the experts wondering which way to turn and many of us losing out with decreasing pension pots and – if you still have them – endowment policies not doing what they promised. Property Investment can give you an alternative pension that avoids the volatile equity markets and gives you income now as well as equity growth and income for the future.
  3. Boost the power of your Pension by up to 75%
    If you invest your hard earned income in property you can purchase properties with a minimum of 25% deposit – this means you have 75% left of those funds to invest elsewhere – another property perhaps. In addition, by renting the properties out, not only will you earn income but you are also effectively getting someone else to pay off your mortgage for you. And if that was not enough don’t forget the icing on the cake – your capital growth.
  4. Bucking the trend
    Buy to Let investments continue to grow as interest rates stay at an all time low (and show no signs of rising) and mortgages for ordinary buyers going up in cost and being harder to obtain. We are all asking ourselves how long this can go on for – surely everything will change and property prices will plummet – however you only need to look at the most basic economic principle of Supply and Demand to see change will not come soon. The UK is suffering a chronic housing shortage so there simply is not enough property for all to buy. Shortage of funds mean although its getting harder for first time buyers / owner occupiers to purchase landlords can get fixed five year mortgages cheaply and easily.


To find out more please email or call us today. We would be happy to have a no obligation call or meeting with you to discuss your options and present you with examples and options on how we can help you.