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Baby boomers cash in buy-to-let properties to buy dream home

Posted 20 February 2017 by Ben Salisbury

A couple who had invested in buy-to-let properties to fund their retirement decided to sell them to buy a David Wilson home that is right for their future

With property said by some to be a better investment option for retirement than a pension, including the Bank of England’s Chief Economist Andy Haldane; asset-rich baby boomers have spent the last few years snapping up second homes as buy-to-let investments, particularly after the pension rules were relaxed.

However, over 500,000 of these will be sold within the next six months according to the National Landlords Association (NLA) because of the new stamp duty regime and changes to mortgage interest tax relief.

Baby boomers like Gail (50) and Stuart Millar (58), who once would have relied upon several buy-to-let properties to fund their retirement, are being forced to sell up as buy-to-let investments become as unprofitable option as a pension.

At a time when baby boomers should be looking to downsize, many like Gail and Stuart, are selling up their buy-to-let portfolios and cashing in on one large property instead, that will be a higher-value asset to potentially sell off ahead of their retirement.

Gail and Stuart have just bought a five-bedroom detached home at Spireswood Grange, a David Wilson Homes development in the village of Hurstpierpoint, West Sussex.

Gail, who ran a charity for blind and partially sighted people for over 18 years in the village and who now works for the Salvation Army, comments: “I hadn’t paid into a pension whilst I was at the charity and instead, my husband and I had invested in a couple of rental properties to rely on in our retirement.

“We used to live at the centre with our children and didn’t need to worry about having a house of our own to live in. 

“All of our children had left home and my 50th year was to be a year of change and new experiences. Having realised it was time to move on from the charity and centre, we needed somewhere to live and decided that rather than hanging onto our rental properties and buying a small property to live in ourselves, we would sell up, to allow us to buy a bigger house to live in now, as well as a good investment for our future.

Stuart, a Field Applications Specialist for a science company comments: “When Gail finished working at the centre, we had an opportunity to start again in a new home. Having lived in the village for over 18 years and built up a lot of friendships, we were keen to stay put.

“It was our mortgage advisor, in fact, that told us about Spireswood Grange. It never entered our minds to look at a new home, but having had experience of doing several building projects in the past, actually having a new house that requires no work is extremely refreshing. It allows us to spend time doing things that we actually enjoy doing, rather than constant DIY!”

“The property at Spireswood Grange was out of our price range but by selling our two buy-to-lets, one of which we part exchanged through David Wilson Homes, we were able to afford it. It is fantastic having five bedrooms as both Gail and I are peripatetic workers, so we can each have a separate office

“As a long-term asset, our house at Spireswood Grange is a positive investment for our future. We have always viewed investing in property positively versus a pension.”

Spireswood Grange is a development of two, four and five bedroom executive bungalows and houses, which is set on the edge of the bustling, yet picturesque West Sussex village of Hurstpierpoint with its array of independent shops, restaurants, delicatessens, cafés and bakery.

Hurstpierpoint is close to the heart of the beautiful South Downs National Park, yet within an hour of London via train, and half an hour by car from Brighton.

Prices currently range from £399,995 for a two-bedroom semi-detached bungalow at Spireswood Grange to £769,995 for a five bedroom detached house. For further information, please contact the sales team on 0844 854 9938 or visit www.dwh.co.uk.

 

 

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