Can Buy To Lets Fund A Retirement Pension?
OnTax Accountants In Dunfermline thinks that if a new survey is to be believed then the buy to let "hold it for a pension" strategy of property ownership is on indecisive ground just now. According to a recent survey by landlord lender BM Solutions/BDRC Continental, 85% of landlords (single portfolio and property) consider their rentals as a complementary pension income.
OnTax Accountants In Dunfermline has discovered that the survey also says that around 60% of the landlords are planning to live on their rental income once they retire. This scenario is very interesting, especially when compared to today’s situation. OnTax Accountants In Dunfermline has also learned that the same survey also reached a conclusion that 40% of the respondents are not sure if they would sell or hold on to their property once they hit retirement, even though they consider their rental property as a pension pot.
A Clever Strategy
However, a small percentage of the landlords are certain on doing away with all their properties when they hang the boots up! BM Solutions head of Sales, Phil Rickards, said the private rental sector’s situation is not going to change anytime soon as it is still considered an alternative long-standing investment for later life. He further added that rental yields remain strong, even though the numbers have dipped a little bit.
OnTax Accountants In Dunfermline can reveal that the survey discusses rental yields having fallen. As per the numbers provided by the research, the yield has fallen by 0.5% to 6.2% in the last quarter of the preceding year, 2012. OnTax Accountants In Dunfermline has discovered that the average yields over the year in each quarter respectively were: third quarter (6.7%), second quarter (6.2%) and first quarter (6.2%). The yield has definitely fallen, yet there is not much to worry about as such fluctuations in the market are considered normal.
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Nothing Serious To Worry About
The East Midlands showed impressive numbers with an average return of 7.1%. In comparison landlords in Humberside and Yorkshire received average yields of 4.6%, which were the lowest in the region. This also highlights how the situation differs from region to region. OnTax Accountants In Dunfermline has discovered that there was a change in tenants’ arrears as well that dropped from 3.3% to 2.4% in the fourth quarter.
OnTax Accountants In Dunfermline highlight that in the last quarter of the year a tenant owed around 2,613 on average, which is 247 higher in comparison with the previous quarter.
Have A Look At The Statistics
The void period showed big changes as well. It fell to the lowest level for more than a year, with just one third of landlords reporting void periods in the last three months of the year. OnTax Accountants In Dunfermline has learned that this is a 4% fall over the preceding quarter and a 13% decrease when compared to the last quarter of 2011.
OnTax Accountants In Dunfermline also found that in addition, some more changes were witnessed in void periods that fell to an average of two months (60 days). North East saw the highest proportion of void periods while Central London witnessed the lowest at 53% and 20% respectively.
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