3 Reasons To Own A Property In Retirement



Only 2 out of 5 of us have considered and planned for inflation when it comes to retirement, and how this is going to impact our finances. With many people getting caught out due to increasing inflation, it is important to proactively plan and take this into consideration when approaching this period of time in your life. Make sure this is not you or your family in the future.

Income resource

The average house price in the uk has increased by 9.6% over the past year until January 2022. Owning a property that you can then rent out to a tenant every month is a good resource of income. Purchasing the right property that has a high-income yield is essential, and it is important to seek professional advice and support before any large investment. This money earnt on rent each month will provide income that can be spent paying off another property or towards every day costs of living. Whilst being in retirement and potentially having more spare time, it could mean that you could manage this property yourself rather than paying an agent, which will further increase revenue each month. It may be good to invest in a property that is a commutable distance from your current home. 

Equity release

An equity release mortgage is a mortgage against your property that runs for the rest of your life. It is a popular way to take control of your finances, and release equity that you have built up in your property over time. This can give you the opportunity to enjoy your later life to a higher degree, as you will have more money back in your pocket,  rather than tied up in your property. This is becoming an increasingly popular option, especially in recent months due to the large increase in cost of living. 

Smaller-scale investments 

If investing in property feels too overwhelming or is something that you don’t want to do, why not consider speaking to a financial advisor and see what options are available to your individual situation that do not require such a large-scale investment and initial cost. This could be anything from bonds to investing on the stock exchange or crypto currency. It is however important to remember that property is one of the best investments that you can make and is relatively low risk in comparison to other investments.

Before making any investment, it is important to speak to a financial advisor regarding your individual situation, and decide upon how much money you are wanting to invest and over what period of time. Upon deciding on these factors, a financial advisor will then be able to guide and suggest different investment options.

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