Buy-to-let returns beat all other mainstream investments
- 27th April 2015
- Landlord Property News
Every £1 of cash investment in buy-to-let in 1996 is now worth over £5
Great news for landlords as research reveals that Buy-To-let returns have beaten all other mainstream investments, including bonds, gilts and shares.
Years of rising house prices mean that despite the slump after the financial crisis, property investors who bought 18 years ago are still sitting on large capital gains. Rising rents have also boosted returns in recent years.
Figures show that every £1 of cash investment in buy-to-let in 1996 is now worth over £5, outperforming all cash, bond and shares over the same period, with an annual return of 9.4%.
Stephen Ludlow, Chairman of ludlowthompson, comments: “Low savings rates and rising property prices and rents have made buy-to-let attractive to investors, while lenders have been competing to offer the best deals.”
“Buy-To-Let investments have been offering fantastic returns for some time. These figures demonstrate just how good the return on investment can be on Buy-To-Let properties.”
“Landlords will be delighted to hear this news, particularly those that have recently invested in a Buy-To-Let property. The upward trend of individuals choosing to invest in buy-to-let property rather than the more traditional types of investment could well continue.”
Low savings rates and rising property prices and rents have made buy-to-let attractive to investors, while lenders have been competing to offer the best deals.
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