August 24, 2007

The property pension scheme

It is getting to the stage where property can out perform pension plan. So it may not be long before the time when instead of investing in a pension plan it may be well worth placing the future of your retirement finances in the solid hands of property.

According to the Pensions Advisory Service, they claim that “Investment property could bring greater reward than a pension scheme”.

Of course there are advantages to putting money into property, you can fix your budget and buy accordingly, rent it out to assist with the mortgage and when you are ready to retire, the property can be sold, rented or you could always live in it and sell your existing property.

However on the other hand there are some potential problems like capital gains tax, tenants, interest rates and property prices.

The choice as they say is up to you, but it is essential that advice be sought before making any long term investment.

Source [Thrifty Scot]

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