UK property beats pensions, says UK official study
Saving for retirement? UK property beats pensions, says UK official study
Nearly 50% of non-retired UK adults believe that property is now the most profitable way of saving for retirement, compared to just over 20% who favoured employer pensions or around 7% who preferred personal pensions, according to the UK Office for National Statistics wealth and assets survey published this week.
The appeal of property has risen in the year to June 2017, compared to the appeal of pensions, which has fallen back over the same period. The proportion who thinks property will outperform pensions now stands at 49%, up from 46% last year and 40% in 2010, when the survey was started.
Commenting on the findings, Guy Stephenson, a director of expat mortgage brokers Offshoreonline.org said, “Property is a resilient asset class which has the huge advantage that for many, it is easy to understand. Pensions, on the other hand have a reputation for being complex and offshore pensions can additionally have high hidden fees.”
Investing in a UK buy to let property is as straightforward as it has ever been for expatiates and for those who have saved for larger deposits, buy to let expat mortgage rates can be as low as 2.74% for loans over £300,000 or 3.14% for some loans over £100,000. “Whilst many lenders now stress test the amount they will advance against notional interest rates of up to 6%, others will look at affordability and rental cover, so it is well worth getting an approval in principle before bidding on a property,” thinks Stephenson. Offshoreonline offer a “no offer, no fee” deal, making it easier for expats to understand exactly what they can borrow, before bidding on a property.