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Down Letting - tips for utilising your family home in retirement
Wednesday, December 14, 2011
Downsizing has become common practice in freeing up capital, but
selling off the family home may not be the only way to subsidise
hard-hit pensions.
"With many potential buyers struggling to secure a mortgage,
letting your family home rather than selling offers a strong
alternative," said ARLA's President, Tim Hyatt.
"Rental returns stand at an average of 6.1 per cent this year,
according to research from Knight Frank. This substantially
beats the returns on many other current investment
opportunities.
"ARLA members also report that achievable rent levels are
increasing, while demand for good quality rental properties remains
high. While market conditions remain so inclined, it could be
prudent to let out the family home, and use the monthly rental
income to invest in renting a smaller retirement home."*
According to ARLA research, 'renting to retire' is also a key
motivating factor in the buy-to-let market. For example, more
than two fifths (42%) of today's landlords originally invested with
a view to creating a retirement 'nest-egg'. **
See our top tips on
"down-letting" a property to rent for the first time here.
*According to the ARLA Members' Survey of the Private Rented Sector, Q3
2011
**According to the ARLA Survey of Residential Investment Landlords, September
2011