Pension or buy-to-let?

[AlfredJPruffock]

Never Trust :

A Nun
A Nurse
A Pension Scheme Salesperson

[AlfredJPruffock]

Don't fart around with all that low income cr*p get in the stock market.

The stock market is good fun, I regularly lose or gain 10's of thousands of pounds.

Yesterday I lost about 20 grand but today is a new day

Tell me youre joking - you didn't lose 20 grand ?

[Cyberman]

Definitely BTL as property will outperform the overtaxed, and extremely risky stock market in the long run, and has indeed over the past 15 years, but make sure it is well positioned for rent capability. A nearby station or university is always a good selling point.

[expat]

Definitely BTL as property will outperform the overtaxed, and extremely risky stock market in the long run, and has indeed over the past 15 years, but make sure it is well positioned for rent capability. A nearby station or university is always a good selling point.

a cause of inflated purchase price

[SuperZ]

Never been a big fan of BTL personally even though I have BTL properties. There can be many downsides, it`s not as easy as many have been made to believe. There are plenty of costs involved, periods were the properties can be vacant and it`s also not an easy investment to get out of especially at the moment. if using an agent they may charge you each time a new tenant moves in, you have to have safety inspections, there this new BTL licence charge being talk about.
Many BTL`s over recent years have been badly burned I think - sheep getting slaughtered.

Assuming property will continue to double every 10 years, it can work for the very long term but don`t expect to make much out of the monthly rent (unless interest rates are as low as they are today), it`s growth only for many and that takes time. Pre-2007 were excptional times I think.

[Cyberman]

Never been a big fan of BTL personally even though I have BTL properties. There can be many downsides, it`s not as easy as many have been made to believe. There are plenty of costs involved, periods were the properties can be vacant and it`s also not an easy investment to get out of especially at the moment. if using an agent they may charge you each time a new tenant moves in, you have to have safety inspections, there this new BTL licence charge being talk about.
Many BTL`s over recent years have been badly burned I think - sheep getting slaughtered.

Assuming property will continue to double every 10 years, it can work for the very long term but don`t expect to make much out of the monthly rent (unless interest rates are as low as they are today), it`s growth only for many and that takes time. Pre-2007 were excptional times I think.

The upside is mainly on the equity gains expected over 25 years or so. As far as rents are concerned you can get rental insurance for a two bed at around 100 quid a year. Rents would also tend to follow inflation. I have a friend that has two BTLs instead of a pension and is doing very well for himself, as he keeps telling me.

[bogeyman]

BTL.

Pensions are a scam.

[expat]

BTL.

Pensions are a scam.

Must non confuse, or even conflate, pension wrapper and pension scheme. For example, you could put money in a pension wrapper by putting it in a SIPP. You can then invest it in several places, including cash if you prefer. That in fact is not the worst investment you could make at the moment.

Not at all the same thing as handing over wonga to Dodgy Pension Fund Ltd telling them to do whatever they will with it.

[DimPrawn]

Must non confuse, or even conflate, pension wrapper and pension scheme. For example, you could put money in a pension wrapper by putting it in a SIPP. You can then invest it in several places, including cash if you prefer. That in fact is not the worst investment you could make at the moment.

Not at all the same thing as handing over wonga to Dodgy Pension Fund Ltd telling them to do whatever they will with it.

This is true.

However I'm sceptical on what the rules are going to be regarding SIPP in the future. I can see a Labour government stealing any money in a SIPP wrapper (under the guise of "fairness").

I can't see them stealing property. Then again....

[bogeyman]

This is true.

However I'm sceptical on what the rules are going to be regarding SIPP in the future. I can see a Labour government stealing any money in a SIPP wrapper (under the guise of "fairness").

I can't see them stealing property. Then again....

If they manage by some miracle to get in again then all bets are off.

They will pillage and plunder to an extent that would make Genghis Khan blush.