UK buy-to-let property has seen some of the best returns for investors in the 21st century, according to buy-to-let broker, Landlord Mortgages.
The company also claims that gold has been a particularly attractive asset class since the turn of the century and that even savings accounts have provided better returns than the FTSE 100.
Research conducted by Landlord Mortgages, claims an investor who purchased an average buy-to-let property with a deposit of £25,000 in 2000 could have made a profit of around £33,288, or 133%, in the last seven years.
Lee Grandin, managing director of Landlord Mortgages, comments: “While buy-to-let property may not be an option for everybody, our latest research shows that you can make considerable gains on capital invested in this asset class.”
A similar investment in gold would have yielded a profit of £19,818, or 79.3% and an average savings account could give investors a return of £7,925, or 39%, over a seven-year period.
The riskier stock market has fared less well since the beginning of the century and a £25,000 investment in the FTSE 100 made in 2000 would give a profit of just £1,443, or 5.8%, up to the end of June 2007. Recent stock market shocks would bring this figure even lower, according to Landlord Mortgages.
However, Grandin warns that the best way to make a consistent return is to diversify, and says: “Whilst buy-to-let has outperformed the other classes included in this research, the old adage applies. By avoiding putting all your eggs in one basket you stand a much better chance of long term gain by not pinning your hopes on the development of one particular sector.”
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From 6 April 2019