Buy-to-let remains a “sound investment option”, according to Andrew Turner, chief executive at Commercial Trust Limited (pictured above).
The CEO of the buy-to-let mortgage broker commented following the release of a new survey by Retirement Advantage on buy-to-let investing for those approaching retirement.
The survey underlined the appeal of buy-to-let investment among this demographic, with many of them seeing property as a viable way of funding their retirement.
The survey of 1,005 people aged 50 or over – who have not yet retired and have some form of private pension savings – showed that 13% of respondents intended to invest in property once they reached retirement; a significant figure that could potentially see an additional 1.3 million buy-to-let landlords in the near future.
Andrew said: “There has been renewed discussion recently of pension freedoms driving a new generation of potential buy-to-let investors.
“I firmly believe that, despite a lot of recent change in the industry, buy-to-let remains a sound investment option.
“Further investment in buy-to-let properties is excellent news for the industry, the housing market in general and for tenants, particularly at a time when demand for rental properties is currently outstripping supply.
“However, any investment strategy needs careful forethought and planning, especially given the changes that the industry has experienced recently and those that are yet to come.
“I urge anyone new to buy-to-let to seek professional financial and tax advice first.”
The survey also showed that 36% believed that investing in property was a safer investment than stocks and shares, with 35% feeling it would offer better returns than leaving money in a pension or bank.
Andrew added: “We welcome anyone who needs help regarding their buy-to-let mortgage needs to contact us.
“Interest rates are currently at an all-time low, political instability is influencing global investment markets and there is high demand for properties from tenants.
“Therefore, there is a good reason why shrewd people are seeing the appeal of buy-to-let mortgages.
“Ultimately, buy-to-let investment is a business and while there are support services available that can help to simplify property investment, it is vital to have a clear picture of landlord obligations.”