In the UK I am witnessing a distinct shift in peoples attitude towards personal pension planning, the traditional pension plan investing in a fund, has become viewed with suspicion by many of my clients. They now prefer the option of investing in something tangible, bricks and mortar, fuelled by success stories and countless make it rich in property articles in the media.

My clients are telling me how easy it is to make money in property and do you know there are no pitfalls?

Well this is were my process of education begins, first of all asking the questions;

What research have you conducted?

Do you know who your target market is?

Are you aware of the tax implications both in terms of revenue and on capital on sale of the property?

Have you looked at the rental market in this area?

How long do properties advertised for rent stay in the local paper?

When do you intend to retire?

Are you going to look after the rents and maintenence yourself or hire someone to do it for you?

Only once I have discussed this and the importance of proper retirement planning, I hasten to add including pensions and the tax benefits they currently enjoy, do I ask my clients to make an informed choice. They then decide what route is better for them rather than following the herd.

However I must add that despite the obvious tax advantages many prefer to go down the route of buy to let as they can see what they are getting for their money. Instead of a faceless fund which might or might not perform to their expectations.