The property industry is reporting increases in enquiries from the over 60s age group with many looking at the possibilities of buying property as an option for investing pension money. With many agents feeling the affects of the Mortgage review they have welcomed the interest from Granlords as they are becoming known as. Some property agents are reporting rises
From 6 April the new rules introduced by the government will allow retirees to access their pension funds as they wish. Bricks and mortar have long been seen as a traditional investment for savings or as an alternative to a pension and so for those looking at investing pension money, property is expected to be a popular choice. This will lead to more demand in the first time buyer or buy to let type of property with some areas already reporting price increases in this sector of the property market
So are Are “Granlords” investing pension money in property changing the market ?
Miles Shipside, Rightmove director and housing market analyst comments:
“Agents report a high level of interest from new landlords, or ‘granlords’, who are typically first time, retirement age, buy-to-let investors. With the highest returns for the lowest investment being at the lower end of the market, the first-time buyer property sector will be the greatest recipient of any increase in demand from investors with substantial pension pots. Unfortunately flats and terraced houses with two bedrooms or fewer are coming to the market in smaller numbers than the middle and upper tier sectors, so are the least prepared for an up-surge in demand.”
So for those looking at investing pension money what criteria should they look at . involvement with the property is an important factor to take into account . The type and age of the property may be a god indicator as to the amount of work and maintenance required if the “granlord” is looking to spend much of his retirement traveling then a low maintenance property is probably preferable. if you are considering investing pension money into leasehold property and it is on a long term basis for income then the length of lease should be considered and also the cost of extending the leases as this may affect the capital appreciation of the property. Investment Property Consults have considerable experience in assisting those investing in property be it a buy to let investor or “granlords” and are happy to assist retirees looking at investing pension money in property