Pensioners in the UK became fascinated with real estate investment

Reform of the pension legislation, which come into force in the UK is likely to cause a substantial increase in the number of transactions in the real estate market of the United Kingdom. However, most likely, many retirees will not be able to take advantage of the opportunity to invest.

Sales growth is likely to be a continuation of the trend of sales of the retirees of large property and real estate in the elite areas and home purchase smaller and less expensive areas. So pensioners trying to free up additional funds for retirement.

It is obvious that residential property is more reliable as a long term investment tool compared to , for example, with such investment tools as stocks and securities. The property is less volatile and can bring permanent investment income. In addition, the estate will eventually have a large capital gain . Generally, the value of real estate more clear and obvious for many people compared to other investment instruments.

According to preliminary estimates, this year is going to double the number of pensioners who buy an investment property that will undoubtedly have an impact on the market.

However, many people older than 55 years are unlikely to be able to count on a mortgage loan, as the banks have a very strict age limit when applying for the mortgage. Therefore, the only way for people who have not enough money for investment, remains the selling of their property , if they are the owners of extra area, or their housing is too expensive area.

Negative aspects for retirees is the fact that the income from renting remits them to the tax status of a higher level than just a pensioner who has a lot of benefits and privileges. Thus, despite the increase in the number of transactions in the real estate market in the UK with the participation of pensioners, this fact is unlikely to greatly affect the investment property market and is unlikely to be a cause of rising prices.

® Helen G. Antre 26.03.2015

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