Top tips for investing in buy-to-let retirement property

27 Oct 2016
Retreat by the sea,
If you’re looking for a significant investment in preparation for your retirement, then you don’t get much better than a buy-to-let retirement property. Property as an investment is one of the safest and most stable options for a guaranteed profit.

The great thing about purchasing with your retirement in mind is that you are preparing in more ways than one; not only will you be making money every month to cover your bond/mortgage – you will also have a home that will be ready to move into when you do retire. This eliminates the extra cost of having to rent out a home in your golden years.


However, as with most investment options, a buy-to-let retirement property also comes with its set of risks and these are our top tips to ensure that you get the best out of your investment:


Research as much as you can


If you are looking for a buy-to-let retirement property for investment, then you need to know exactly what you are getting yourself into. This is particularly the case if it’s your first time buying for investment purposes. You need to get to know the market inside out and speak to professionals who may be better at predicting the property trends for the next couple of years.

Supplementary Income

Image Credit:careerconnections.nj


If you rush into things you may end up with a property that loses its value when house prices in the area drop which means that you will then have to cut the rent on your property, and you might find it difficult to sell. However, if you do your research properly – you could stand to make substantial amounts of money on your property if the house prices rise. So, you need to do as much research as you possibly can into the market to avoid making a bad investment.


Calculate the costs

Before you even step out the door and look at buy-to-let retirement properties – you need to sit down and do the maths first. Look at the prices of the properties that you are interested in and then look at what the rent in the area is for similar properties.
Lenders are typically looking for rental income to cover 125% of the mortgage payments on a property, and keep in mind that many are now demanding a large deposit. Don’t go straight to your bank first – but rather shop around with a bunch of different companies and associations for the best rates. Once you have determined your mortgage rates, and your rental income (don’t forget maintenance too), you will then be able to take a look at the number and see if it’s a worthy investment.

Be aware of the risks involved

Before putting your money into anything, you should always make sure that you are aware of the risks and negative aspects that could arise out of your investment.
Supplementary Income



What will happen if the rising house prices slow and start to fall? If property prices fall will you still be able to afford your buy-to-let property? If there is a rise in mortgage rates will you still be able to afford them comfortably? Do you have enough spare money in the bank to cover repairs and maintenance in the house if something goes wrong? If a boiler breaks or the pool cracks – do you have a fallback nest egg that you can use to get these fixed?

There is a whole lot of risk that you need to look at carefully and consider before you invest in a property.

Look overseas

Many people buy retirement property in their area. This is because of a number of reasons with the most obvious being the proximity to the property should any problems arise, as well as being familiar with the local market.
However, buying in the area is not always the best choice and more and more Britons are starting to look overseas for retirement properties. Investing in a place popular with tourists guarantees year-round tenants and also makes a handy holiday home should you be in the mood for a little sun-seeking. Prices are often lower too, and this makes investing in a buy-to-let property overseas a great investment, that if done right, can prove to be very lucrative.

Remember that you may live there


The best thing about a buy-to-let retirement property isn’t just that it could provide an extra income, but that you may choose to live there someday. If you do plan on settling down in your investment property eventually, then you need to remember to buy something in an area that won’t just give you good rent while you don’t live there – but also one that’s in an area that you would love to live in.

Retirement is the perfect time to move somewhere a little warmer, with beautiful beaches and great food – I mean retirement is the time when you should be rewarding yourself for a lifetime of hard work. Somewhere like Calpe in Spain is fast becoming a firm favourite to invest in buy-to-let retirement properties and with warm weather, golden beaches and Mediterranean seas this comes as no surprise.

If you are thinking about investing in a buy-to-let property in Calpe, contact us, and you can have a look at our portfolio of incredible properties for sale in Costa Blanca. We will help you out with everything to do with buying in Spain, and with us you are bound to find a property so perfect that it will have you wanting to retire immediately.

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