Property investment is a safer bet for retirement than a pension, according to the Bank of England’s chief economist.
Andy Haldane believes that pensions are too complicated, while continually increasing property prices make for a lucrative investment.
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Property ‘almost certainly’ a better investment?
With many reliant on a pension at the end of their working life, this statement may come as a surprise. Haldane agreed with the general view that the better investment “ought to be a pension” but went on to say that it’s “almost certainly property.”
However, the comments should be taken with a pinch of salt. Haldane’s salary at the Bank of England is around £180,000 - way above the national average - while his pension is set to be over £80,000 when he retires.
The economist, who owns two properties, has been described as ‘irresponsible’ by former pensions minister Ros Altmann.
Should you invest in property?
Potential landlords will, however, need to think carefully about which market to target and thoroughly research the best buy-to-let areas for their investment.
Getting to grips with the legalities of becoming a landlord is also essential - the likes of right-to-rent checks, fire safety and landlord insurance are potential pitfalls for those who dive straight in.
Are you looking to invest in property? Let us know below.