More and more pensioners are turning to property as a means of income, thanks to a new law which enables people facing retirement to withdraw their entire pension in one lump sum. Recent YouGov statistics indicate that approximately 11% of retirees have stated that they intend to become landlords – if that includes you, then you’re in luck. We’ve put together a beginner’s guide to buying and renting property, to help you avoid some common property pitfalls, and get the most out of your pension.
Keep an eye out for rough diamonds
One way to boost your chances of making money on property is to buy a place that nobody else is interested in. Perhaps it’s basic, or a little run down, and other investors aren’t keen on the idea of putting in brand new plumbing and electrics. But you’ll find that buying a relatively low-cost property like this can yield all sorts of possibilities to add value. Build an extension, or add an extra bathroom (all with the relevant planning permission, of course), and watch the value of the property rise and rise.
Always, always, always have a survey
So you’ve found the ideal fixer-upper. Congratulations! Now send in an expert to tell you what you’re dealing with, before you buy. You might think that all it needs is a little elbow grease, but peek below the surface and you could be faced with dry rot, termites, or a portal to hell. You never can tell.
Be sure to play by the rules
To make a comfortable living as a landlord, you need to ensure that your property complies with any and all regulations and requirements that may apply to homes in your area, be they related to electricity, water, gas, or other aspects. This can make for a lengthy, often frustrating process, but you’ll be glad you did it when none of your tenants end up electrocuted to death.