pension or property?

[beetle bug]

For a comfortable retirement, should I be getting a pension or investing in property instead?

[CushtyFred]

You should be winning the lottery.

[STAH]

Hi beetle bug,

I am aiming to do both of the above. I feel that it is always best to spread the risk and not leave all of your eggs in one basket. However, property is a safe as place as any for your cash.

Hope this helps.

Scott

[kwicky]

They say investing in your home is pointless as you have to live somewhere. If you invest now in a second property this is risky at the moment because buy-to-let has reached a plateau. A pension is only useful if you manage to receive years of payments way beyond your retirement date. Alternatively with a private pension you can specify the age at wan't it to mature so I would personally take this at 55 even though you may still be working.

[dzug]

Do you want when retired the problems of dealing with stroppy tenants. having to arrange repairs and the like?

Any pension fund ought to have SOME of its investments in property, so you can get the best of both worlds.

[devilhunter]

I would not get a pension I would (indeed have) invest in a 2nd house.
When was the last time you heard of someone losing money in property ?
I would find a local property auction (Clive Emson or Ward and Partners here in Kent) and see whats around.You should be able raise a deposit through your own house and look for a simple family home for around �150k that earns 7 to 10k a year rent.
Of course you could buy a bigger house that has been converted into flats or bedsits for say 200k and the rental should be 15 to 30k a year but it will need a more hand on role.Good luck.

[Mrs_Pegasus]

"When was the last time you heard of someone losing money in property ? "

Late 80s/early 90s!

[dzug]

I've heard plenty of people at the moment whose rental income does not cover the loan, repairs, tenantless periods, etc. They do of course have the capital gain but in the short term it's no help.

[noxlumos]

Then they are doing it all wrong dzug ( and THAT takes some doing at the moment). Property every time imho and I'm a property developer.

[dzug]

Quite so, noxlumos - you are an expert, they are not. What's obvious to you is not universally so.

[jennyp]

Property for us everytime.

[rugeleyboy]

property for me...... even if it doesnt cover your rent and it costs you �100 per month, i would of thought that would of been a wiser investment than giving �100 per month into a pension scheme??

[porfavour]

Should you decide to invest in property, please take my advice and 'buy to let' and I mean buy a property that will easily let, if possible go for two smaller properties instead of one higher valued one. If your property is vacant for two months it is a shortfall of nearly 17 percent of your expected income, three months and you have lost 25 percent. 'Buy to let' means you choose, and if necessary take letting companies' advise, a property that is sought after in the rental market. Do not do as I have done in the past and choose a property that you would like as your own home, do not add all the finishing touches that you would appreciate, and never be driven by your emotions....nobody feels compassionate towards the companies in their share portfolio or pension plan.....if the return is unacceptable, quick offload and take the initial hit, recoup and re-invest. With property the costs of mistakes are expensive so check the local or even the overseas markets carefully. Good luck.