Sarah Beeny Autumn 2017 - 60
▲ BUYING AND SELLING
as a ta free lump sum, while keeping
your retirement fund invested, but running a buy to let
property comes with additional baggage such as high
running costs and void periods.'
PLANNING IS CRUCIAL
o if you do take the plunge and become one of the rising
number of pensioner landlords', what should you be aware
of Well, for starters, being the owner of an investment
property for income is very di erent to owning a home in
which to live. s a landlord, you are running a business.
emember that property prices can uctuate, sometimes by
large amounts, and you must consider all of the additional
costs associated with running a second property, such as
maintenance and empty, or void, periods.
pecialist insurance for your investment property is
also vital as standard policies may not cover you if
something does go wrong.
standard insurance policy will not include such
clauses as non invalidation,' e plains Nick ymes from the
eich roup of ompanies. If your tenants do something
that invalidates the policy, provided you are unaware of it,
this clause allows you to claim on the policy.'
he other di culty is that if you find yourself in a
position where you need to release the capital tied up in
060 | OCTOBER 2017
the property, there is no guarantee that it will sell quickly
and the profits will likely be subject to capital gains ta .
'For most people, property is a home, not a source of
retirement income, and the best long term approach to
save for retirement is likely to be in a pension,' says teve
ameron. lanning for retirement can be a comple
business and it is always worthwhile seeking professional
financial advice to help you achieve your retirement goals.'
ob urgeman, investment manager at rewin olphin,
backs this up, saying that as part of a balanced portfolio,
buy to let certainly has a role to play in retirement savings
- but not at the cost of your pension pot.
It diversifies your income stream, which reduces the risk
to your overall savings,' he says, before warning that while
property has not had a major slump for a long while, there
are no guarantees. ulling money out of a ta e cient
pension and putting it into a new environment and paying
income ta on rental income isn't a compelling idea.
urthermore, there's a lack of e ibility with a property -
for instance, being able to sell it when you want at the right
price. ou also need to consider whether you can increase
rental income on your buy to let property to help pay for
care if you need to, as you get older.'
ros and cons aside, one thing is certain there's plenty to
consider for any would be pensioner landlords out there.