Date Posted: 31st March 2015

Pension Scheme Reforms

Recent media coverage, discusses the important changes to pensions from April 2015, who it will effect, how, why, and what should people do? Individuals retiring from April 6th 2015 onwards will now able to access the full amount from their pension pot fund. Not having to pay tax on the first 25% withdrawn from the fund; many are looking for investments to create a possible ongoing income.

When mentioning investments, property is probably thought of as one of the prime examples of an asset, with the greatest potential for financial growth. Financial services company Hargreaves Lansdown, conducted a survey and reported 14.5% of people surveyed would like to spend their pension fund trying property investment. A further 6.5% are planning to give gifts to family; funds which could help towards first homebuyers deposits perhaps.

Since the recession of 2008 to 2009 property prices have largely recovered to their pre-recession high point and in certain parts of the country, London in particular, exceeded all expectations. It’s never possible to truly predict the future but we can of course look at recent trends and forthcoming events on the horizon. With prices gradually rising across the country and an anticipated rise in the number of property investors, due to pension pot funds, many people are expecting property prices to strengthen further.

Over the years, through successive recessions, housing bubbles, varying high interest and low interest rates, the team leading Pafena have continually dealt with property investments. What was true with property 30, 20 and 10 years ago is still true today: viewed as a long term investment, property continues to perform very well.

Where to start: Knowledge is key.

Having someone with experience and knowledge built over time will help you to make the right choices.

It is so easy for First time property investors to make mistakes regarding the properties they buy, how much money they should spend and how they make an income from that same property.

Whether it be resale or rental, having the right team around you can make the difference between success and failure.

At Pafena we know that the rental and resale markets are different and perform in different ways. If you’re looking to buy and resell then your buying strategy would be different than a buy-to-let property.

Likewise rental markets vary from area to area with properties giving quite different yields.

Also, consider whether you want to invest in a single high value property or several smaller properties.

Pafena can advise and locate properties to your investment needs to help you realise your investment potential.