Putting money into a pension for retirement is always a sensible thing to do, but recent figures suggest that property is actually a better investment pound-for-pound.
Dawn Clarke, director oflettings and property management at Nock Deighton, says the research shows an average property has increased by £7,376 in the past six months. Can you say that about your pension?
The research by Key (formerly Key Retirement) found that people in the West Midlands who have paid off their mortgage saw their property increase by more than £1,000 per month during the past six months - despite the national economic uncertainty.
The West Midlands region fared particularly well compared to other parts of the country. According to the figures, a retired mortgage-free homeowner will have seen their property value increase by £7,376 over the past six months, compared to the national average of £5,889.
A record £1.118 trillion of property is owned by over-65s, which has increased in value by an average of £28 billion.
According to Key, which started analysing this un-mortgaged property wealth of the over-65s in 2010, retired homeowners have seen growth of nearly £340 billion in property wealth – equivalent to an increase of 43%.
Will Hale, CEO at Key, commented: “The numbers are fascinating but the basic fact is that no matter what happens year to year to house prices, many over-65s will have considerable property wealth which can transform their standard of living in retirement and help family members.”
From our point of view here at Nock Deighton, these figures are yet more confirmation that property remains an extremely reliable investment. For more advice about property investment, why notget in touch to see how we can help.