MANY financial experts believe that investment properties are the best pensions. With the personal pension scandals of the late 1980s and early 1990s, faith in such schemes has been badly dented and people are increasingly looking to bricks and mortar as a sure means to invest for their retirement, and/or to provide valuable extra income.

One recent survey (by the Property Investor Show North) shows that 80 per cent of landlords look to their properties to keep them afloat in old age, and don’t have a pension at all, while 91 per cent are planning to acquire more buy-to-let properties.

Investment buyers form a hard core of all auction attendees. However, you need no qualifications to take your place among them. If you are unsure about what constitutes a suitable investment property, contact your local auction office early (ie: two to three weeks before an auction) for advice and guidance.

Usually, though, a catalogue speaks for itself, spelling out actual or anticipated income from specific lots. To name but a few: a flat in Cliftonville producing £4,800 per annum, where the hammer fell at £48,000; one bungalow in Hastings, producing £6,000 per annum (this one sold after auction); a fine detached house in Herne Bay producing £19,260 per annum, which sold at £250,000.

Fears have been expressed that the ‘buy-to-let bandwagon’ is becoming saturated. However, figures show that an overwhelming 81 per cent of property investors dismiss such talk, believing that the buy-to-let market will continue to grow.

The key fact is that in the UK, demand exceeds supply; there will always be more people who want houses than there are properties to satisfy them. Low interest rates, volatile stock markets, and the excellent capital gains (49-100 per cent) experienced by many landlords over a three year period, all contribute to the security of this market.

Additional incentive comes from the government’s plans to allow rented residential property as part of Self Invested Personal Pensions (SIPPS) which will come into effect in 2006. Historically, property has consistently been a good investment and, with the government keen for individuals to provide for themselves in old age, the longterm future looks just as sound. Contact Ward and Partners Auctioneers on 01622 859999; www.wardandapartners.co.uk/auction