This means that, unless you choose your property very carefully, it's very difficult to make money out of your investment. The reckoning is that the yield from the property needs to be 6 per cent of the price paid to be a paying proposition so everything is on a very tight margin.
Buy-to-let as an alternative pension plan may not be as good a move as it has been in the past. Certainly there are considerable gains to be made where investors entered the market a few years ago but, historically, houses have not been as good an investment as commercial property or shares.
According to data from the Halifax, a residential property worth £100,000 back in 1983 has risen to £555,000 in 23 years. If the property had been commercial, then its worth would have been £997,000. The outstanding winner would have been an investment in a FTSE all share tracker fund. If you'd invested the same £100,000 re-investing the dividends then the value would have been £1.4m.
Rental income from the residential property should be considered in the equation, but shares still come out a firm winner.
Looking at the situation over a shorter term, things are very different. Since 1996, residential property has beaten the share market hands down. By almost 30 per cent, in fact. House prices are now double what they were five years ago, whilst the return on your shares would only have been 11 per cent.
Rental income should not be the only consideration when weighing up the buy-to-let versus the traditional pension choice.
The generous tax relief of 22 per cent (40 per cent for higher taxpayers) on pension contributions should not be ignored. This means every £100 in your pension pot has only cost you £78 (£60 for higher taxpayers). 25 per cent of your fund can be taken as tax-free cash.
As far as residential property letting is concerned, any cash realized will be taxed at 40 per cent, less your personal capital gains allowance and any inflation indexation. Being a landlord can be something of a hassle and certainly holding a pension is comparatively trouble-free. However, you don't have to purchase an annuity with your buy-to-let profits. It's all a matter of trying to assess the pros and cons.
It's obvious that you need to consider carefully which type of investment is right for you. Clearly over the longer term, the share option was the correct way to go, but who is to say what the future will hold?
By diversifying your investments, hopefully you can hope to achieve some sort of balance. Cash, shares and property were the old maxims.
There's plenty of financial advice around. Do make sure you weigh it up, for a worry-free retirement.
Buy And Be Happy
For reasons that escape this writer, young women still wear low-rise jeans. Rather than flatter and show off their figure, they choose to hide themselves in baggy, ill-fitting denim. This just in: muffin-tops and saggy butts look sloppy and thoughtless, no matter whose designer-label adorns the jeans.
Fortunately, older women have avoided the low-rise style, for the most part. Many 40-something women know that the right clothing presents them in the best light, and they like the feeling of looking good. They also know the value of sticking to the basics when it comes time to fit the wardrobe into the budget.
For women in their forties, a good strategy combines the latest popular designs with the classics that fit their bodies the best. That is where jeans can really come to the rescue. A great pair of jeans can work in many social situations, and can brighten the day regardless of the mood in the morning. When choosing your new designer jeans, look for the ones with some stretchy material incorporated into the blend. Designers know that a bit of stretch helps their jeans fit perfectly each and every time.
Designers also know that shoppers have different body types, so they provide different styles. Many women look fabulous in jeans with a waist band that lies at or slightly beneath the navel. This waist line elongates the legs for a pleasing balance with the torso. Straight or slightly flared pant legs complete the silhouette. Be very careful when considering tapered legs.
Let's look two other designer styles and the things to keep in mind when trying on these styles of jeans.
Capri pants, also called pedal pushers or clam diggers, usually end somewhere between the knee and the ankle. First of all, they make the wearer look shorter and the hips look larger. They also make the legs look shorter and the ankles look thicker. If Capri pants still seem like the way to go, choose ones that are dark in color, plain rather than printed, end just below the knee, and have tapered legs (more fitted at the bottom). Wear them with sandals and without cuffs.
The second style some women consider is high-rise, tapered fit designer jeans. These jeans fit snuggly around the waist with a leg that tapers in close to the ankle. Unfortunately for most shoppers, they make the hips look wider and larger and the tummy look bigger.
Plus size women have some other considerations to keep in mind. First of all do not assume that the only option is baggy jeans. Flattering styles that actually fit rather than hide this body type do exist, and trying to hide hips and legs behind baggy jeans only adds frumpiness and bigness. Talk to a professional, or perhaps consider having your jeans professionally tailored. It really is worth it. Avoid wearing black just because rumor has it that black is slimming. Black works fine for those already slim readers, not so much for the plus size figure. Skin tone and hair and eye color should influence the color clothing in the wardrobe. To look slimmer, concentrate on tailoring, cut, and style instead.
Have fun shopping for designer jeans, because why do it if it is not fun? And then have fun wearing the new purchases because of the care taken in chosing.
Both Michael Challiner & Rich Dudka are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Michael Challiner has sinced written about articles on various topics from Finances, Advertising Guide and Quit Smoking. Check out Michael Challiners great articles about mortgages and financial matters. articles -. Michael Challiner's top article generates over 165000 views. to your Favourites.
Rich Dudka has sinced written about articles on various topics from Finances, Internet Marketing Company and Modelling. Rich Dudka fearlessly blogs about just about any topic under the sun. Read his stuff about designer jeans at and at .. Rich Dudka's top article generates over 40500 views. to your Favourites.
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