Well lets look at the positives.
As my nan always says….you’ve always got your health!
To which i respond …..I’ll need it when I’m sleeping rough!
Seriously though, many people face the very real prospect of having to increase their pensions and savings to the level they were previously at, the only trouble is, they have even less time to do it!
2 Years ago your savings and pension values would most probably be well on their way to keeping you in the style you had become accustomed.
No Longer, you now have to think fairly seriously about increasing the value of your savings, so whats the best way to do that?
As far as i can see, 2 options come to mind.
1. High risk, but potentially high reward share dealing.
2. Property
Let me discredit the first one quickly, if you have never dealt with shares before i wouldn’t recommend such drastic action, if you fancy giving your hard earned to a broker think seriously about the fact it will probably end up with a banker who had a large part to play in losing you that money in the first place!
So we come to property investment.
Hardly surprising as that is what you do for a living i hear you say!
True, it’s also what i know best.
However it also produces returns of between 6-13% along with the capital growth which will undoubtedly occur whilst investing at the bottom of the market.
Look abroad and the yield can sometimes be up to 20% with capital growth upwards of 15% per annum.
In the past, many investors have discounted property because of the “risk” attached.
Unfortunately these same investors now may not have much of a choice!
If you need your pension to return you a decent amount and do not have 40 years in which to grow it you may simply have to look at property as an investment vehicle.
I’m currently looking at property in London that returns 7% and overseas property in Cape Verde that returns 12%.
Similar London property was selling 2 years ago at £400,000, now on the market at £270,000. If we reach the prices of yesteryear there is £130,000 profit for you.
The units in Dunas Beach Resort, Cape Verde look set to return in the region of £10,000 per year; and if capital growth continues in the area, they should only cost me £2,000 to purchase outright!