As of next year, people across the country will be able to release up to 25% of their pensions completely tax-free and access the money with almost the same ease of a bank account.
This means that retirees can now use that money however they wish, but if they want to put the money to good use, including property investment in their long-term financial plans is a must.
Here are some great ideas to help you make money from investing in the property market:
Use Local Knowledge
If you’re looking to invest in property, it’s hard to know what will be good value and what will bring you the best return when you’re miles away from the place you want to invest in.
Try and look for bargains in your area so that you have all the important information you need about transport, schools, local amenities, etc. at your fingertips. If you do want to invest in another area, make sure you speak to a local expert who can advise you on the best properties for your money.
Flats and apartments actually tend to generate a better return on investment than houses do. This is because students and young professionals are more likely to rent in the city centre and desire furnished, compact accommodation.
Try and invest in flats that have two bathrooms and two bedrooms, as they will offer more flexible accommodation options to anyone who wants to do a flat share with someone they don’t know or simply live with a friend while retaining their own space.
Be Tax Efficient
It can be hard to manage taxes, especially when you have more than one property. There are, however, some different ways in which you can keep your tax bills down and really capitalise on your investments.
Try and save as much money as possible on any tax-deductible items, such as property furnishings, and if you are married, consider splitting the rental income with your partner, so that you pay tax in the most efficient way possible.
Spread Your Investment
Don’t get too excited and put all of your eggs in one basket, try and spread out any investment money you have to cover your back at all times. Having a range of properties in your portfolio is more likely to help you financially than just depending on one individual property.
There is nothing to stop you investing in a villa in the south of Spain, but think about also investing in a nice little student property in Manchester that you know will always prove easy to rent out.
Home Sweet Home
If you’re trying to decide how you can make some money from the comfort of your own home, then consider the house you live in first. If you are thinking of selling up, then try and offer buyers as much added value as possible. Look at getting a loft conversion or extension, as this could add up to 20% to the overall value of your property.
If you live in a large house and your children have all flown the nest, you could be thinking that your house is too big and you need to downsize. There is an alternative. Consider dividing your house into a few different flats, this way you can keep one for yourself and rent the others out.