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Pensions for property scheme well received
Pensions for property scheme well received
David Willetts, the Conservative minister has welcomed plans to let parents tap into their pension to help their children buy property.
KENSINGTON,
London,
United Kingdom
(prbd.net)
07/12/2012
David Willetts, the Conservative minister has welcomed plans to let parents tap into their pension to help their children buy property. The proposals were put forward by Deputy Prime Minister Nick Clegg at the Liberal Democrat party conference in Brighton, which was met with criticism.
Due to stringent lending criteria and the rise in property prices over the last few years when lenders made it more difficult to secure a mortgage, many young people are unable to get their foot on the property ladder. Young people are unable to raise the deposit required - often 20% or more - and so this scheme would enable parents to use their pension to help them get a foot on the ladder.
Details were not released, but it could meant that the cash lump sum element of a pensions savings pot (25%) could be a used as a guarantee or collateral to extend the amount that young people can borrow.
A recent report by the Centre for Economics and Business Research (CEBR) for HSBC, revealed that last year nearly 19% of first-time buyer transactions would not have taken place without help from parents and grandparents. In 2008 this figure was just 13%.
Reena Malra has discovered and developed strategies to take the focus off the property price and put it on the flexible and convenient payment terms. This is how Reena can structure transactions where the Buyer and the Seller both get what they really want by establishing their circumstances, motivation and needs. She has mentored 100's of investors and specialises in property lease options, instalment contracts and rent to buy. She says:
"This is a controversial topic as the arguments for and against are strong. As we are painfully aware due to the economic turmoil, many pension funds are not doing very well and as a result the pension pot is very small. We need to take due care before considering releasing any funds to ensure we are protected in our old age. Don't take unnecessary risk unless you can afford to lose that money.
"Instead, you can implement alternative methods of getting your kids onto the property ladder if releasing a cash lump sum of your pension is not a favourable option. Alternative methods such as lease options, instalment contracts and delayed completions which allow you to control a property that gives you the same benefit as if you owned it but doesn't have traditional constraints of getting a mortgage and putting down a large deposit."
Notes to Editors
Reena Malra has mentored 100's of investors, both novice and experienced. Her techniques are empowering new and seasoned investors to successfully structure profitable property lease options, instalment contracts and other creative deals from start through to finish. She has been interviewed several times on Sky TV as a guest speaker giving expert advice on property lease options and instalment contract, and has also featured in "Property Investment News" magazine explaining the pros and cons of doing creative strategies. Find out more about what a property lease option is and listen to Reena Marla's interview by clicking here. Click here to find out more about how Reena Malra can help you buy a home with little or no money down.
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About
Reena Malra has mentored 100’s of investors, both novice and experienced. Her techniques are empowering new and seasoned investors to successfully structure profitable property lease options, instalment contracts and other creative deals from start through to finish
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