Most standard savings accounts are paying out little more than 0.93% in interest and a £100,000 pension pot pays out just £5,236 a year, so is it any wonder that property with long term capital growth offers us such an attractive alternative?
(PRWEB UK) 15 April 2012
Even though the bank of England claimed the effect on pensions has been exaggerated this week (Source: Telegraph), Colordarcy are keen to point out that the report by PWC shows that investors might need to look into alternatives such as property which can be more profitable in the long term.
Loxley McKenzie Managing Director of Colordarcy said, "Most standard savings accounts are paying out little more than 0.93% in interest and a £100,000 pension pot pays out just £5,236 a year, so is it any wonder that property with long term capital growth offers us such an attractive alternative?”
On a cautionary note, good returns on investment are not available when investing in just any property - the best strategy is to find property that will not just pay for itself, but generate a strong and growing income on the initial investment say analysts at Colordarcy.
"Not all property markets provide these kinds of opportunities and many investors can get caught out by investing in a falling market, or one with a lack of tenant demand. Before approaching any property investment opportunity, investors should first look at the net rental yield" added McKenzie.
"Investing in property will not only pay your bills in retirement, it can also provide you with a regular income even before you retire. With your traditional pension on the other hand, you will have to wait years until you retire before you receive anything back."
The best thing about investing in property, according to Colordarcy, is that when you compare it to traditional pensions, the investor is in control rather than the fund manager. The investor decides when to change direction and when it is time to sell the asset to release a lump sum of cash.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Atlanta, Brazil, Florida, Turkey and the United Kingdom.
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