Participants in a new survey by Partnership expect that 47% of their retirement income will be needed for mortgage repayments.
Whilst the rental market is booming, many people still aspire to own their own home. The ageing first time buyer market means that purchasers start and therefore finish their mortgage payments later in life.
“Most people aim to own their own home by the time they retire but the trend towards remortgaging, purchasing later in life and being kept off the housing ladder by high house prices means that this is out of reach for almost a third of people,” explains Mark Stopard, Partnership’s Head of Product Development.
He adds: “When people consider their retirement, it is vital that they look to reduce their mortgage borrowing as much as possible. No one wants to worry about cutting back on essentials such as food and heating to meet housing costs when they should be enjoying retirement.”
Taking action to plan for resolving this situation is vital – the sooner the better. The best performing asset class in the UK for the last four years is HMOs. With an expected return of 12% – 16%, HMOs offer an outstanding opportunity to clear mortgages early.
“Thanks to changes in the pension rules, more people are investing in property to cover mortgage payments and provide additional income during their retirement,” explains Martin Roche of HMO Property Sourcing. “HMOs maximise returns from property – more and more people are benefitting from this.”
HMOs offer a secure investment, with the opportunity to receive a high return on your investment, and in addition provide capital growth over time. To find out more about property investment at its best, contact the Team at HMO Property Sourcing.
Ask us for details – we hope to see you soon.