Pension or buy to let property, which should you choose?
The relaxation of pensions regulation in 2015 saw a sharp increase in older people cashing in all or part of their pensions to invest in buy-to-let property. Pensions were stagnating in the current low-interest climate, and those who had an eye on their future (especially those wanting to take early retirement) were looking around for a solution that would yield more than their pension fund.
Becoming a landlord
The once-scary prospect of becoming a landlord is no longer so daunting, and more people are finding this out. There is a lot of help, and lots of tools are available to make the task easier. Agents will play their part, of course, and the more nervous new landlords can always delegate part of their responsibility by paying a management fee, but those who are a little braver have decided not to eat into their profits and take on the job of letting and managing themselves.
Once the decision is made and lenders (if there are any) have given permission, owners can decide to use an agent simply to find a tenant, and then the rest is up to them. They would do well to equip themselves with the latest property inventory software.
A small business?
Becoming a landlord effectively turns you into a business. You may have seen small business accounting software, enabling you to keep track of costs and profit from your property. Other software options will enable you and your prospective tenants to agree not only what is to be left in the property, but also the condition it is in. This may well come in useful at the end of a tenancy, in cases where there is loss, damage, or wear and tear to items you own and that you will want to recoup the cost of.
If you think property inventory app or software might be the way to go, the consumer group Which? has compiled a useful list of apps that will help you let and manage your property.
Once you have let successfully let your property and you are in possession of a legally-binding tenancy agreement, you can then relax and let your new pension pot grow without much input from you, except to re-populate the property once your tenants decide to move on. You will also want to ensure that your pension and any buy to let property that you have is included in your Will. To have this professionally and legally completed you should contact a Will Writing Service Cheltenham way such as https://beesandco.com/our-services/will-writing-service-cheltenham/ who can ensure all of your assets are included in your wishes.