What’s the first thing that goes when you retire? A steady income! Renting is the key to a steady income when you retire.
This is where a buy-to-let property may help, providing you with an income and possible capital growth in the long term.
For example, if you are young, you could invest in a buy-to-let property and rely on capital growth to provide you with a lump sum when you sell the property and retire.
You could then invest this money to provide you with an income when you stop work.
There are many tax pitfalls, the same with anything that makes you the smallest amount of income, however how else are you going to be able to accumulate a big enough pension pot? Investing in a pension will save on your tax, however where are you going to get a substantial amount that will be worth the investment in the first place?
It makes sense to get a second home/buy to let property the profits could far outweigh the tax implications in the long run. You do need to be in it for the long game though!
This is where a buy-to-let property may help, providing you with an income and possible capital growth in the long term.
For example, if you are young, you could invest in a buy-to-let property and rely on capital growth to provide you with a lump sum when you sell the property and retire.
You could then invest this money to provide you with an income when you stop work.
There are many tax pitfalls, the same with anything that makes you the smallest amount of income, however how else are you going to be able to accumulate a big enough pension pot? Investing in a pension will save on your tax, however where are you going to get a substantial amount that will be worth the investment in the first place?
It makes sense to get a second home/buy to let property the profits could far outweigh the tax implications in the long run. You do need to be in it for the long game though!
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