You are here: Home - News -

Pension plans turn to buy-to-let

by:
  • 01/11/1999
  • 0
Buy-to-let will rocket in to the millennium as more people shun traditional retirement plans and inv...

Buy-to-let will rocket in to the millennium as more people shun traditional retirement plans and invest in bricks and mortar, Bristol & West has forecast.

The bank said it had noted an increase in retirement planners opting to invest in assets they could see as opposed to the more traditional paper-based pension plans and stocks and shares

Richard Hurst, spokesman for Bristol & West, said: “We are seeing a number of people using buy-to-let as a road to retirement. People understand property, it is bricks and mortar. If you had £10,000 to put down as a deposit you can see and touch what your money is invested in

Increasingly forward thinking investors had been looking to when the mortgage was paid off. Then they could either sell the property and take the lump sum from the sale as a pension or continue to save and utilise the rental income. Buoyed by a “tremendous confidence” in the current housing market, buy-to-let looked an attractive option for the more carefree investor

Hurst said: “Obviously value can go down as well as up which is why you need to lend responsibly. But investors could potentially earn more money through property. House prices are still going up. That bestows a confidence in the market. Buy-to-let has been successful for the simple reason that people understand property

The bank said it had also noted an increasing trend in customers taking advantage of its flexible mortgage deals and paying loans off early

Hurst added: “If someone has a flexible mortgage and they make an overpayment it is classified as pseudo tax free. Your money is working harder for you

Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
M&G to launch Global Tech fund next month

M&G is aiming to launch its Global Technology fund in mid-November and, as revealed in Investment W...

Close