{"id":10396,"date":"2024-08-12T20:48:49","date_gmt":"2024-08-12T19:48:49","guid":{"rendered":"https:\/\/www.craneandco.co.uk\/pages\/?p=10396"},"modified":"2024-08-12T20:48:49","modified_gmt":"2024-08-12T19:48:49","slug":"is-it-better-to-invest-in-property-or-a-pension","status":"publish","type":"post","link":"https:\/\/www.craneandco.co.uk\/pages\/is-it-better-to-invest-in-property-or-a-pension\/","title":{"rendered":"Is It Better to Invest in Property or a Pension?"},"content":{"rendered":"

When it comes to retirement, most people have the same ambition: to spend their latter years doing what they love without worrying about scraping by.<\/span><\/h3>\n

But what\u2019s the best way to build a nest egg to keep you secure in your old age?<\/p>\n

Let\u2019s look at two popular forms of investment: buy-to-lets (BTL) and pensions.<\/p>\n

Reasons to invest in a buy-to-let<\/span> <\/strong><\/h3>\n
    \n
  • Landlords can enjoy a monthly income plus capital growth.<\/li>\n
  • The property market has been buoyant over the past decade, with prices jumping 73% between 2013 and 2023. (Source: ONS)<\/li>\n
  • Demand for rental properties is high – a trend that looks set to continue. Average UK yields are 5.6% (Source: Zoopla).<\/li>\n
  • Investors who enjoy DIY, have a trade or an eye for design can add significant value to a property.<\/li>\n
  • If you know the local market, you may be able to invest in an up-and-coming area before prices surge.<\/li>\n
  • You can sell your buy-to-let whenever you want, whatever your age. Although the transaction will take time to complete.<\/li>\n<\/ul>\n

    Considerations<\/strong><\/span><\/h3>\n
      \n
    • Being a landlord comes with obligations and legal responsibilities. Many investors get a letting agent (the cost of which is tax deductible) to handle the day-to-day management of their BTL.<\/li>\n
    • Property prices can fluctuate, and there may be times when your buy-to-let is untenanted. However, you can get insurance to cover the loss of rental income.<\/li>\n
    • As a landlord, you\u2019re responsible for covering repairs and maintenance.<\/li>\n
    • You may have to pay capital gains tax should you sell up.<\/li>\n<\/ul>\n

      Reasons to Invest in a Pension<\/strong><\/span><\/h3>\n
        \n
      • You may be able to claim some tax relief on pension payments.<\/li>\n
      • Depending on the type of pension, your employer may make contributions.<\/li>\n
      • If your pension is a SIPP (self-invested personal pension), you\u2019ll have flexibility over where you invest.<\/li>\n
      • You can take small sums from your pension when necessary (age permitting). You don\u2019t have to cash it out all at once.<\/li>\n<\/ul>\n

        Considerations<\/strong><\/span><\/h3>\n
          \n
        • Commonly you must be 55 to access your pension. (This jumps to 57 in 2028).<\/li>\n
        • Most pension funds invest in stocks and shares, these can rise and fall.<\/li>\n
        • Some workplace pensions offer little choice as to the nature of the investments.<\/li>\n
        • Your pension provider will charge you fees.<\/li>\n<\/ul>\n

          The hybrid option<\/strong><\/span><\/h3>\n

          To diversify their investment portfolio, some people invest in a BTL and<\/em> a pension. While not everyone can afford to do this, if you\u2019re in a position to do so this is an option to consider.<\/p>\n

          Disclaimer<\/strong><\/span><\/h3>\n

          With all major investment decisions, it\u2019s always best to consult a financial adviser for recommendations tailored to your situation.<\/p>\n

          Contact us today to learn more about investing in the local property market.<\/strong><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"

          When it comes to retirement, most people have the same ambition: to spend their latter years doing what they love without worrying about scraping by. But what\u2019s the best way to build a nest egg to keep you secure in your old age? Let\u2019s look at two popular forms of investment: buy-to-lets (BTL) and pensions. […]<\/p>\n","protected":false},"author":3,"featured_media":10397,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[1,3],"tags":[8,25],"class_list":["post-10396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-moving-home-advice-and-guidance","category-personal-advice-from-our-team","tag-advice","tag-jerry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts\/10396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/comments?post=10396"}],"version-history":[{"count":1,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts\/10396\/revisions"}],"predecessor-version":[{"id":10398,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts\/10396\/revisions\/10398"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/media\/10397"}],"wp:attachment":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/media?parent=10396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/categories?post=10396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/tags?post=10396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}