How Building a Solid Property Portfolio can be a Stable Pension Plan

Age UK reported that in 2018 the state pension age of 68 would gradually increase depending on the year individuals were born, with The Independent claiming that the average Briton will spend 3,507 days at work including 204 days of overtime in their life-time. In addition to this, life insurance provider Aegon told Moyes Investments that the average pension pot in the UK currently stands at nearly £50,000, couple this fact with the average UK life expectancy of 79 for males and 81 for females, it is clear that to live comfortably in your retirement age there needs to either be multiple pension pots built over the years or another source of stable and non-laborious income.

This blog will explore the conditions for investing in Bricks and Mortar post-pandemic and why investing in Romal Capital properties could provide a stable and comfortable pension plan for you.

Bricks and Mortar & the Economic Climate

With the recent economic climate seeing a surge in the UK property market, there has never been a more prominent time to invest in an asset as stable as real estate, the Nationwide  Building Society reported that the average property price had risen by £15,916 in the last year with many factors contributing, from spending habits to government incentive schemes, the time to consider a long-term retirement plan is now.

Factors enabling buyers the opportunity to enter the buy-to-rent market included restrictions on splurging sprees allowing many people to dramatically reduced their spending habits and save more of a deposit, the attractive property market conditions with the introduction of the Stamp Duty holiday and low interest rates. BuyAssociation examined the “homemover wave” and discovered there to be a 32% increase in those ‘moving soon’, a 47% rise in households ‘moving now’ and a 26% uplift in those that have ‘just moved’.

With the clear rise in asset appreciation on top of climbing rental yields the economic climate is pledging a safe and reliable environment for aspiring buy-to-rent investors seeking to secure a solid pension plan. With Romal Capital’s award-winning new build properties available on the market currently, it is predicted that as a result of their excellent location and high-quality standard finish these properties can provide a strong and lucrative pension plan as the climbing property prices push home-ownership down and higher rental living.

Demand

Many people have been influenced by the pandemic to take the plunge into the property market and move-house, but their decisions on where they want to live post-pandemic is more heavily influence by social and environmental factors from having more flexibility with working-from-home to taking the mental health benefits more seriously.

In a recent survey conducted by The London Assembly Housing Committee, trends have highlighted demands for city living to still be high, 54% of those who want to move want to remain in the city. This pattern has been seen all over the UK with younger generations still attracted by the convenience, community feel and long-awaited hustle and bustle of city living to return.

In statistics collected by Hamptons, it has been revealed that rental growth has increased as demand outweighs supply, with the average rent of a newly let property outside of London coming in 8% higher than in February 2020. The North West is a largely saturated region requiring plenty of accommodation and with the lower property prices provides the perfect investment opportunity.

More specifically Liverpool ticks the social and environmental boxes that have been highlighted in the pandemic and offers urban lifestyles with the added desirables. Dr W. Christopher Winter, author of The Sleep Solution, found that being near a body of water helps creativity, mindfulness and even makes sleep easier. With Romal Capital properties nestled at the water’s edge balancing convenience and stylish living alongside the calmness and serenity of water, it truly is a rare and exciting investment opportunity that not only promises to fulfil financial security in the form of a secure pension plan, but also offers tenants the opportunity to balance their work life balance in a truly one-of-a-kind blue space community location.