FREE tenancy agreement
FREE landlord softwarePensioners will be given more choice about what to do with their pension pots including being able to avoid taking out an annuity. According to the Financial Times the Treasury estimate that 320,000 people a year will now be able to 'draw down' or take their cash out of their pension.
Our view
The Daily Express are suggesting that many pensioners will rush out and opt to buy a buy to let instead. Doubtful! The reality of buying and managing a rental property is that it is like running a small business. Whilst it's classed as an investment for tax purposes the reality is that a fair amount of work and responsibility is involved. Most people looking to require are looking to getting away from life shackling responsibility. Getting a buy-to-let might make financial sense but for many pensioners they will not want the responsibility. Putting you penision cash into or a fund, annuity or any other investment fund will still seem for the vast majority the more appealing option.
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2 comments:
With annuity rates running as low as 2% in some cases, a buy-to-let yield is a very attractive alternative.
A fully managed service would allow the pensioner to avoid most of the "life shackling responsibilities" and enjoy a better income than an annuity.
You can bet that there will be plenty of entrepreneurial property management companies poised to take advantage of these changes, offering pensioners great property-based investments without any of the hassle of being the landlord.
So on that basis, it seems highly likely that many will choose to invest in buy-to-let property.
I've been predicting that this will happen ever since the announcement and am aware of plans afoot to provide pensioners with just that option.
Many landlords are buying at present and the prices of likely investments are forging ahead and I've seen cases of landlords in competition and forcing over asking price offers.
We live in interesting times.
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