Investment In Property Preferred Over Pensions
Andy Haldane, Chief Economist at the Bank of England, has stated during a recent interview with a national newspaper that although pensions should be considered by UK residents to subsidize themselves in old age, investment in property was superior.
Mr Haldane justified his viewpoint by talking further about the housing crisis facing the UK at present, with housing prices increasing and a lack of new homes being built to meet the growing need for accommodation for the general public.
Pensions can be cumbersome to understand to a first-time saver, even with the assistance of a financial adviser and the jargon used can be off -putting. Mr. Haldane himself conceded early this year that even with his credentials in economics, he found some of the pension terminology used too complicated. Mr. Haldane's views have upset some figures in the financial services.
Investment in either property or a pension is not without its risks. For property investments house prices and rental prices can fluctuate depending on the strength of the housing market. The same can be said about pensions which can vary depending on the strength of the financial market.
One potential benefit to consider in regards to property ownership over having a pension to fund your retirement is that if your property was rented out, you would begin to see a return on your investment once it is tenanted. Ideally with this steady income each month, eventually the cost of purchasing and maintaining the property will be covered and then a profit will be made. With a pension, depending on the contract you would have to wait to reach a certain age before any money is released back to you.
Should you decide to invest in property, you will require property owners insurance. We would recommend that when approaching the market for property owners insurance that you look for an experienced broker to handle your needs. Having property owners insurance via a broker will be beneficial to you not just by getting a competitive rate, but also for assistance in the administration of any future claims you may be unfortunate to have.
Property owners insurance is a speciality of B&M Insurance. With over 25 years experience in both commercial and residential property, we are ideally placed to provide you with a competitive bespoke rate, fitting your specific requirements.
Author: Ryan Hinegan