Property Portfolio - Who Needs a Pension Scheme?

How much do you need to retire?receive around �4321 pcm or
Does around £25,000a year sound about right;�51,852 per year.
this means you will need a retirement pot of aroundNow I know that your pension scheme will also
�500,000!increase in value, however, the actual monthly or
Various Friends and Family members have pensionsannual return is not what interests me.
through work, they pay in around �300 perThe point that interests me is that your retirement fund
month and this gives you a pension of aroundwill decrease as time goes on. Say you manage to
�108,000 of your own money if you worksave up �500,000, in 20 years time, taking an
there 30 years.annual income of �25,000 all the money is
Now say the company you work for matches thatgone!
money, that's �216,000, after 30 years ofUsing Buy to Let Property as your pension, the
work and an annual pension of just �10,800!property retains its value and you get your income
Ok, say I can show you how to have a decent sizedfrom the rental of that property. So not only do you
pension and you needn't put anymore than aroundhave a property worth �864,388 which you
�300 in… interested?can draw on whenever you need, you also have a
The Answer is Property Investment, More specificallyyearly income of �51,852.
Buy to Let.Saying that, I would like to end up with a balanced
Take a �200,000 flat in Manchester…portfolio, I have some money in Shares and would like
Buy at a 15% discount (lots of these deals around!)to add to my portfolio as well, perhaps the secret is
Rent at �1000 pcm.not to put all of your eggs in one basket?
Management fee of �100 pcmIn conclusion, the safer bet would seem to be a
Take home �900 pcm.pension scheme, but I will point out that over a historical
Buy to Let Mortgage at 5.8% of �200,000 =average, property has doubled every seven years, this
�1,185 repayment pcm.is around 5% per annum. The same goes for rentals.
This will cost you �285 per month.A friend of mine recently bought his first house and
Say property goes up a conservative 5% per annumwas amazed a year later when he came to
over the next 30 years.remortgage, that it had risen �30,000.
In 2037 that same property should be worthHe pointed out that this was more than he made in a
�864,388 and you will own it outright!year, to which I pointed out….imagine if you had
As far as rental income is concerned.2!
Taking a rental increase of 5% per annum you should