Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing.

Should buy-to-let properties be part of your retirement plan?

Properties or pensions – many of us are undecided what the best way to save for retirement is.

Property appears to be a safe investment with the average UK house price increasing by 10.6% over the year to August 2021*.

Demand for buy-to-let properties are high due to many young people being priced out of the housing market.

Will house prices drop after the stamp duty holiday?

The extension of the stamp duty holiday increased demand for houses. However, there is a risk that both demand and house prices could fall now that the stamp duty holiday has ended.

There is also the risk that tax reliefs and allowances for landlords will be cut further.

Property, like any investment, is complex and it is worth considering all of your options before deciding whether to invest in property.

Another downside of property investment is that it is a hands-on investment that requires a lot of time and maintenance which can be costly.

Why diversification is key

For an investment portfolio to be successful and mitigate risk, there must be diversity. Diversity is holding a range of assets such as stocks, shares, investment trusts, bonds and property.

However as there are so many options available it can be hard to understand where to begin.

At Four Wealth Management, a financial adviser can talk you through all of your investment options and help you to understand the tax implications of each one. Certain investments might not be suitable for your individual circumstances.

If you are considering investing in buy-to-let properties as part of your retirement plan, it is important that you understand your other options as well and keep some assets in other places such as a pension which is a tax-efficient way to save.

Optimise property investments

Expertise is needed to optimise property investments as it is a hands on investment and there are a lot of options you need to consider.

For example, should you manage the property yourself or use an agent? You need to consider if you have enough time to manage the property.

You also need to consider the amount of time managing it might require as well as the costs of the property potentially being vacant between tenancies.

A financial adviser can add value

A financial adviser at Four Wealth Management can work with you to create a diversified portfolio. This can include property. Your financial adviser will be able to establish your long-term goals and determine which investments will be able to provide you with the most stable form of income or growth. A financial adviser can also help you to structure any property purchases tax-efficiently.

Plan your retirement today

At Four Wealth Management, a financial adviser can help you to evaluate all of your investment options to help you plan for retirement.

Book a no-obligation zoom meeting/phone call with a financial adviser on 0117 973 0500 or leave us a message online.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise.  You may get back less than the amount invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

*ONS, ‘UK House Price Index: August 2021’, 2021

Enquire Now

If you have any queries or would like to arrange a face to face meeting with an adviser for a no obligation review of your personal finances, simply book a call back using the form below. Alternatively, you can call us on 0117 973 0500.

The Partner together with St. James's Place Wealth Management plc are the data controllers of any personal data you provide to us. For further information on our uses of your personal data, please see the Partner's Privacy Policy or the St. James's Place Privacy Policy.

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Should buy-to-let properties be part of your retirement plan?
FourWealth Management