A Place In The Sun presenter Sara Damergi explains why you should ditch your pension for a second home

Would you take this financial risk?
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  • Saving into a pension scheme is just common sense, right? Not according to A Place In The Sun Presenter Sara Damergi.

    Related: Phil Spencer says you should do THIS if you want to buy a house by 25

    The 40-year-old TV presenter said in an interview with the Mail on Sunday that she doesn’t trust paying into a pension scheme and thinks investing in property is the best way to save up for retirement.

    ‘I have got a two-bed flat in Catford, South London, which is my pension pot,’ the presenter said. ‘I know there are tax advantages to saving into a pension, but even so, in my opinion, there is no better way to invest than in property.’

    Pension scheme

    Image credit: John Goodwin

    The presenter went onto explain that: ‘I just do not trust pension schemes – I believe property is more secure, especially long-term. If you invest in a property in your 20s or 30s for your retirement, I would say it’s extremely unlikely that by the time you come to sell the property that it will be worth less than what you paid for it.’

    Saving up for a property in your 20s if you not on a TV presenters salary can be tough. However, scrimping and saving to get on the property ladder as soon as possible could help leave you more financially secure in the long term.

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    Image credit: Colin Poole

    In fact, Sara Damergi, says her biggest money mistake was not hopping onto the property ladder earlier. ‘I’ve got a couple of properties in London now, but I could have bought my first one when I was in my early 20s,’ she explains. ‘Instead I wasted money on clothes and having a good time. I was 30 years old when I finally got on the property ladder.’

    ‘I hope that by the time I retire, the value of my Catford flat will have gone up significantly,’ The Place In The Sun present continues. ‘I expect I will have earned a better return than if I had invested in a pension.’

    However, with Brexit uncertainty and houses prices going down in areas such as London, we have to point out that investing does always come with a risk. So what happens if you don’t get a better return?

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    Image credit: David Merewether

    ‘The advantage of property is you can physically touch it,’ says Sara Damergi. ‘It is always there, you can always get at your cash. In the worst-case scenario, your tenant will gradually pay off your mortgage and you’ll end up with a rental income.

    ‘You do not lose with bricks and mortar,’ she adds.

    For more advice from Sara Damergi, check out her podcast Lifehackers with co-host Kerr Drummond.

    Related: Think twice – Kirstie Allsopp sparks debate after warning against THIS popular paint choice for walls

    Would you consider swapping your pension scheme for a second property?

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