Despite concerns over the buy to let market, we think that the rental market will continue to be buoyant over the next year or so. Pension reforms now in effect from April 2015aking effect from April 2015 will allow people to draw upon their pensions and take as little or as much from them as they wish. We envisage a lot of people will use this opportunity to use this money to fund a buy to let investment as an alternative to their pension. The main attraction of the reforms is the ability to minimise income tax by withdrawing from pensions over a number of years. Increasing property prices not only increase capital value but make homeownership unaffordable for many which gives a steady supply of tenants.
However there are tax implications and anyone looking to draw money from their pension need to consider these implications. There is also a lot involved in becoming a landlord and we definitely recommend using an ARLA registered agent like us to guide you through the process. Choosing the right property is vital and we are always happy to give advice as to what kind of property would be a good investment. If you are thinking of increasing your portfolio, please give Peter, Rebecca or Jemma a call.