A survey by Retirement Advantage revealed that many seniors intend to invest in buy-to-let property.
Costs for buy-to-let landlords have risen due to increased stamp duty and tax relief reductions, but this has not put off all potential landlords. Retirement Advantage surveyed a total of 1,005 people over the age of 50, around 13% of whom said that they intend to invest in buy-to-let property when they retire to provide them with extra retirement income. If this percentage is accurate for all older people, it would mean an extra 1.3 million buy-to-let landlords will enter the market in the next decade.
About 36% of the older people thought that buy-to-let investing was a lower risk than buying stocks and shares, while over a third (35%) believed that buy-to-let properties would provide higher returns than leaving their money in a conventional pension scheme or bank savings account.
A buy-to-let investment is a business, meaning that prospective landlords need sound financial advice and must be familiar with all the legal obligations involved.
After deciding to become a landlord, and finding a suitable property, a mortgage broker can arrange a commercial mortgage to purchase the property if the buyer does not have sufficient cash. Some large banks and building societies will not lend to people over 60, but a mortgage broker should be able to find a specialist lender who can provide a commercial mortgage for those looking to get involved the property market after retirement.