Property as a pension

[DimPrawn]

https://tranio.com/spain/adt/1577453/

Wow I never realised such bargains were out there. I'm hopping on a plane NOW.

[PeterSon55]

investing in property in Barcelona

talking about Barcelona now it is probably the best option. the city’s in the top 15 European property markets with really good prospects for investment, because 1) it’s a popular destination (the Chinese simply swarm there) 2) it has low interest rates and 3) the demand exceeds the supply. another advantage is that apartments for sale in Barcelona will definitely grow in price with the course of time and if you go for short term rentals you’ll get decent returns - about 7% yields. hiring a management company might be a bit of pain in the arse though it will help to avoid problems with finding new tenants and the expenses will be rewarded with higher occupancy rates anyway

[MrMarkyMark]

My parents are considering the idea to buy a flat in Barcelona to rent it out, it seems quite profitable : 5-6% yields, hah?

They'll find it quite tricky if they wish to be legal and above board.
They are not issuing any new permits for people to rent holiday property there.

https://techcrunch.com/2016/09/19/ai...legal-rentals/

Obviously, this is all couched as caring about rental rates / prices for local people, rather than the mayor being in the hoteliers pocket

[LondonManc]

Don't use property!

What should we use then, shares in MFI, Woolworths, banks?

[OwlHoot]

You can get 8 or 9% yield on properties in Slough, along with decent capital growth.

Yes, seriously.

and if there's a garden shed, you can pack another family in and get 12% yield!

[ChimpMaster]

My parents are considering the idea to buy a flat in Barcelona to rent it out, it seems quite profitable : 5-6% yields, hah?

You can get 8 or 9% yield on properties in Slough, along with decent capital growth.

Yes, seriously.

[jessaragen]

My parents are considering the idea to buy a flat in Barcelona to rent it out, it seems quite profitable : 5-6% yields, hah?

[scooterscot]

Balanced portfolio and all that.

With properties in Europe, Asia, America - tick!

[kaiser78]

Balanced portfolio and all that.

[blackeye]

People invest in property because of the ability to leverage.

If I could put up £10k of my own money and get a bank to give me £190k extra to put on a global tracking fund for 25 years, I would do that instead...

[DimPrawn]

Property is not the best way to save for retirement and savers should focus on their pension instead, the head of the Financial Conduct Authority has warned.

In a speech delivered on Friday the City watchdog's boss, Andrew Bailey, said investing too much of someone's retirement fund in property could be "self-defeating" as the potential to make money over the long-term is uncertain.

Or to put it another way. If you invest your money in property, as opposed to pension funds run by City bankers, there is little scope for the banking industry to cream off all the profits in the form of entry fees, exit fees, ongoing fees and poor/opaque valuations.

[BrilloPad]

City watchdog chief warns against using property as a pension

FCA chief is clearly totally mad.