Buy to let is still a good investment option in the UK, beating investing in gold, cash and fine art in the last decade in terms of returns, new research has found.
Investing in the FTSE 100 would have brought the biggest return when considering the annual capital gain and the percentage yield with an increase of 119%, whilst the value of classic cars is up 94% during the same time period. However, for those that aren’t professional investors a buy to let property is a very good option, according to the research from lettings inventory and property compliance specialists who looked at the return on each investment and how each market has performed over the last 10.
The report says that when considering the annual gain in house prices along with the increase in rental yields, an investment in the sector a decade ago would have brought a 92% return today. This is much higher than the 60% return that investing in gold would have brought and a world away from the 16% increase in cash or the 4% drop in fine art. It also says that the growth in the property market has been by far the most reliable option with the FTSE 100, gold or cash providing a far more volatile option that is also open to a larger degree of impact from political and economic factors as well as influence from other foreign countries. While classic car investment sits ahead of property, that too is made or broken on the car itself rather than the overall market and while a nice art collection may brighten your walls, it is also harder to find a buyer for, even when compared to the current Brexit property market slowdown.
All things considered and despite successive Chancellors hitting the buy to let sector with numerous legislative penalties including an increase in Stamp Duty, a reduction in high rate tax relief for landlords and a higher rate of capital gains tax on residential property profits, the conclusion is that bricks and mortar remains one of the best and most stable investments available.
We Can Help
Private landlords, like yourself, play an important role in the rental market and it is important that we pay attention to the challenges they sometimes face. If any of the above have got you thinking, or if there were other unrelated questions you might have, then pop into our Charminster office or call us on 01202 565758 and we’d be pleased to help you to let and manage your properties.