How property investment can help in retirement
/We explain in this blog how property investment can help in retirement, so your legacy can continue to provide financial support for you and your children long after you have retired.
There has been a lot in the press lately about the higher cost of living, and especially how this will affect those about to or those who have already retired. Pension investments experienced big drops during the last twelve months, with some losing up to 25% of their worth. This, when coupled with a high rate of inflation, means that people about to retire may not receive the level of retirement income they were expecting, and, in addition, its purchasing power will be reduced.
So, how can you create an investment portfolio that will provide you with that extra income during your retirement?
Moreover, how can you create a financial legacy that gives your children that all-important head start, for example, helping with the cost of further education or a deposit on their first home?
How we help our clients interested in property investment for retirement
Holmeshaw Ltd. is an independent property investment agency specialising in bringing profitable opportunities in buy-to-let, student, and furnished holiday properties to our clients.
We create a personal and assured investment through redevelopment opportunities throughout the UK and in holiday hotspots in Spain. Many of our clients invest with us because they want to leave more than just money to their children.
They come to us to find out how property investment can help in retirement.
Our clients invest in our projects to ensure their children are left a bricks-and-mortar legacy, a property portfolio that can continue building wealth for their children, providing a passive income for the whole family to enjoy. If you would like to talk to us about our investment opportunities or discuss options for building a property portfolio you can leave as a legacy, contact Daniel or Fraser today.
We only choose projects we would be happy to invest in ourselves, where there is high demand for rental property in order to maximise capital growth in the future. Read on to find out how property investment can help in retirement.
Medium-term benefits of property investment
If you are looking for a get-rich-quick scheme, investing in property is not for you unless you have a serious amount of capital. But you can expect medium-term benefits to help with those family lifetime stages, such as:
· New kitchen or extension to the family home
· Paying for life-changing events, such as a wedding
· Funding exciting holidays or a holiday home
How property investment can help in retirement: Financial freedom for you
Most people realise that they cannot rely on the State pension to give them the lifestyle they want in retirement, so alternative investment streams can provide the extra income to make this stage of life more comfortable and worry-free.
What’s more, property investors benefit from a tax-efficient tangible asset. Whether you are experienced or a newcomer to property investment, Daniel and Fraser are happy to talk you through the tax benefits if you decide to invest with them as part of your retirement plan. Even a small number of properties can bring you financial freedom for:
· The enjoyable retirement you have always dreamed of
· A passive income stream
· Equity in bricks and mortar to reinvest or cash in, depending on your circumstances
· A lasting legacy for future generations
How property investment can help in retirement: Helping the kids
For many parents, along with the worry of how they will finance their children’s education, a major concern is helping them to get on to the property ladder, which has become much more complicated in recent years.
According to an article published in the Metro last year, Rightmove calculated that a single person needed a deposit of more than £74,000 for mortgage approval - an increase of 112% on the 2012 figure. The news is slightly better for a couple because two salaries mean lower risk to the mortgage lender, so last year, a deposit for a couple for the average home in the UK (£223,117) stood at 10% of the value.
However, if you have built a property portfolio, it can help you to give your children that little bit extra when they are ready to begin their independent adult life. Maybe a ready-made place to stay while they embark on their career or university course. Or the profit from the sale of the property could provide that all-important deposit for their first home.
How property investment can help in retirement: Leaving a legacy
There are two ways that a property portfolio can create a lasting legacy for your children. The first is through the creation of passive income from the rent generated. This passive income can be used for other investments, spent on some of those projects we have already mentioned, or even reinvested into more property. Alternatively, you can pass your property portfolio to your children as a business, giving them the opportunity to learn about investing in bricks and mortar.
The second is by creating lifetime assets by owning a property portfolio that can be sold or left to grow. The equity in your property will increase as the value grows, producing an ever-increasing return on your initial investment. Alternatively, you can let your children live in a property rent-free while they study or start their careers, giving them a chance to save more towards a deposit for a house of their own or even sell at a later date to fund their purchase.
Investors in our Woodlakes Retreat benefit from specialist property management by investing in Hoseasons luxury lodges, resulting in a stress-free passive income stream. Daniel and Fraser will be happy to discuss the benefits of investing in this holiday property opportunity, fully managed by experts.
If you would rather invest your money abroad, the Royal Marbella Golf Resort on the Costa del Sol in Spain (part of the Home & Villas by Marriott network) has the added benefit of up to 60 days of personal use for our investors. This means you can enjoy the benefit of your property personally by taking a family holiday and appreciating the five-star service and comfort first-hand. The resort is managed and operated to very high standards, as expected from Marriott, so you can rest assured that your investment is in good hands.
Having a financial advisor or tax advisor to help you devise the right buy-to-let strategy for your circumstances and retirement plans, so you can give your children that extra help when they need it and even provide a legacy for future generations.
If you would like to learn more about investing with Holmeshaw Ltd. or how property investment can help in retirement, contact us to discuss our project in the UK and overseas.
As with all investments, Daniel and Fraser would encourage their investors to take advice from their financial and/or tax advisors before investing any capital in a property.
