- Mon 17 Mar 2014
At the age of 39, I hasten to add, back in 1999! – my thoughts turned to future pension provision and reviewing my pension contributions to date I discovered a huge gap in my expectations of life after work in retirement and the bleak prospect of an under-performing pension plan!
At that time, having sold my estate agency business, I decided to invest in something tangible which led me to my decision to purchase a portfolio of property to rent out.
Fast forward to 2014 and comparing my traditional pension plan performance (yes, I have kept up the payments) and my property portfolio performance it is very clear to me which of the pension provisions has performed to my expectations – yes, you’ve guessed it – my rentals portfolio.
Looking forward again it seems obvious to me the time is now right to add to my property portfolio for three main reasons. To explain:
Being a bit of a ‘stats nerd’ back in 1999, having reviewed house price trends since 1960, it was clear at that time that an exaggerated house price increase trend was overdue. The housing market record between 2000 and 2007 is well-documented. Looking back at this graph and bringing this up to date we may be back to a similar starting point as in 2000.
On the income front I believe there is still an overdue rebalance of the property market despite the Help to Buy schemes, low interest rates etc. The volume of rental occupation versus home ownership is set to grow for the foreseeable future.
My third point is that having come through a disruptive finance based recession where big question marks have been placed on the financial services industries, I feel I am better served with an investment I can touch and feel such as bricks and mortar, rather than a paper based investment that can be traded around the world and be at the mercy of middle men each taking their cut at each turn.
Hindsight is a wonderful thing, and no doubt in ten years’ time I will be either proved right or wrong! However it feels right to be in this market place at this time.
On a final point, being part of Bradleys Complete Property Service I will be using Bradleys Conveyance team for a purchase, insuring through Bradleys Insurance Services and letting through Bradleys Lettings. If I decide to arrange a Buy to let Mortgage I will arrange this through Bradleys Financial Services.
If like me you are thinking of purchasing a property to rent please give our local office a call to start your investment journey.
Bradleys Land & New Homes Director