How to generate enough money through property investment for retirement

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Happy New Year everyone! Tarquin Jones are back for 2019 and we hope you’ve all had a great start to the year.

To kick off the new year, today’s article will cover one of the main motivations for many buy to let property investors- earning enough money to retire with through property investment. Hopefully the tips within this will help you self-fund your own pension when you decide to retire.

Choose an area where there is an low supply

Following on from point number one you’ve now chosen an investment in an area with high demand. The key is to uncover areas with a limited supply. Ideally, you would want to identify the demand in an area before other people have discovered it. Sometimes it is not always feasible to seek out undiscovered areas in the UK.

What is to stop other developers from recognising the appeal and lucrative returns, and build luxury retirement homes in areas that will eventually rival your own investment? You will need to consider the and barriers to entry. In areas such as Devon, there are lots of National Parks and Areas of Outstanding Natural Beauty, which must be conserved. Local government initiatives that control the supply of property can include restrictive planning permission for new build properties. Aside from local measures, the national government prohibits building on vast swathes of land under the Green Belt (Protection) Bill 2017-19. This means that there is only a limited amount of space to build upon, thereby limiting competition from other developers.

Choose somewhere in an area with a high demand

Firstly, you will need to evaluate the demand for the property type you are purchasing in that area. There would be little point in buying a student property in the middle of the countryside away from all universities, or in a town where the local university is able to cater for most students. Similarly, with retirement property older people tend to move away from cities and settle in quieter villages in the countryside or by the sea, so it makes sense to look for retirement complexes that are situated in these areas. Our UK retirement home investments are often situated in seaside towns in the south west of England, in counties such as Devon and Cornwall. In an area where an existing retirement village is located, one in four people are over the age of 65.

Unique position or service offering

If it is the case that you invest in a city with lots of competition, you should choose a property that has a unique appeal. This could be the additional onsite amenities, the build quality, the historical aspect of the building or location.  “Often our retirement home investment opportunities are refurbishments of Grade II listed buildings, and their historical heritage really appeals to the elderly generation. Our investments also include luxury amenities such as spa and beauty treatment centres, cinema rooms and fine dining experiences”. Says investment director at One Touch Property.

Sustainability of investment

Once you have done your due diligence and have selected an investment in an area where there is an undersupply, it is time to start considering the longevity of the investment. You don’t want to pick an investment with a limited market. For example, you may choose to invest in a retirement home in Portugal which accommodates British expats, but Brexit may affect the number of British people choosing to live in Portugal which would dramatically affect the income you receive. Therefore, if you are looking to invest for long-term income, it is also better to think long term.

By following what I’ve mentioned here, you will give yourself the best chance of making lucrative investments that will allow you to retire on your own terms and live the lifestyle you’ve become accustomed to. Living off the income from your property portfolio post retirement or selling what you own are two ways to reap the rewards you’ve sowed down the years. Regardless of your choice, investing in property is widely considered one of the best ways to secure your retirement fund years down the line.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at for more details.

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