For income and capital growth. Our acquisition team is actively involved in acquiring residential property at below market value where an immediate capital gain can be offered to our investors. We also acquire parcels of land and work on commercial to residential conversions which can offer yields of up to 9%. We work with agents, private individuals, use social meda, mailshots and advertising to find the right properties and may often look at between 10 and 20 individual units before selecting one that fits our criteria.
Rising property values in many areas, combined with rents at a record high and low mortgage rates, have made property an appealing option for anyone looking to supplement their income. A regular income is vital in retirement, with bricks and mortar providing one of the most popular ways for people to finance life after work. Recent research by insurer Aegon reveals the amount of income people hope to retire on each year has risen from £35,000 to £42,000. This would require a pension pot of more than £1 million, a sum higher than the new lifetime pension allowance. Few people are in a position to save anywhere near enough to provide this sort of income when they stop work.
This is where a buy-to-let property may help, providing you with an income and possible capital growth in the long term. For example, if you are young, you could invest in a buy-to-let property and rely on capital growth to provide you with a lump sum when you sell the property and retire. You could then invest this money to provide you with an income when you stop work. If you are older you could use cash to buy the property which would provide you with a steady income.
