Buy to let is still a good investment option in the UK, beating investing in gold, cash and fine art

[Grampa]

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 VeriSmart. It 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.

‘Last week’s spring statement was a missed opportunity for the Government to backtrack on their previous attacks on the buy to let sector, attacks that have done little to solve the UK housing crisis and if anything, have caused further restrictions in the level of suitable stock while keeping rental prices buoyant as a result,’ said founder of VeriSmart, Jonathan Senior.

‘However, the buy to let sector remains the backbone of the UK property market, helping to support aspirational homeowners as they work to overcome the sometimes impossible financial barriers of home ownership. The need for this support is clearly evident as it remains one of the most lucrative investments one can make,’ he pointed out.

‘With little being done to address property supply or affordability on a meaningful scale, this is likely to continue going forward and despite the Government’s best efforts there will always be demand for a good, honest landlord providing above the board accommodation to those that need it,’ he added.

Original Source: Property Wire https://www.propertywire.com/…/buy-to-let-in-the-uk-is-sti…/

[Richlist]

Apparently buying first and second class stamps is a good investment. They increase in price by around 30% a year which far out strips most other things you could do with the money. Prices went up last Monday.

[Melboy]

Yes, I bought my stamps RL   

Well, I have bought 2 properties in the last 12 months.  Property buying at my age is probably not recommended by the "financial experts" .....but when were they ever right eh!

I look at it from a different angle perhaps to most people. It is my experience to note that every 10 years the price of property goes up..... and the value of money goes down. So for me to buy property is mainly for that reason especially with the chronic interest rates. 

If you are thinking of buying property for investment then it is best to consider that the deal is for at least 10 years imo.

Just out of interest the "Wealthy People" of the UK are still buying and in bulk as well. Ed Sheeran has just bought £42 million of multi property flats and houses.... so it's not all bad news.  

My daughter is an EA and she would tell you that there are many many cash buyers & mortgage buyers  out there still coming through the door seeking investment property.

[Richlist]

I agree.....

Currently property is likely to provide a better return than placing it in a bank at 1.5 - 2%......but there are other factors.

Age is one of them. Some of us are getting to the stage in our lives where we want to retire, don't want the hassle of renting, or the risks associated with it or the onerous legislation that is heaped on us. Cash is available immediately......money tied up in property isn't , it can take many months to sell and get your hands on the equity. But, if you are younger and can afford investment property it makes perfect sense to invest in it.

Even in retirement buying the right property and having it managed by the right people can work well and provide a better return than leaving the money on deposit in the bank.

If you have lots of money it's best to spread at least some of it around other asset classes. Classic cars can do very well, I've always had some money held in gold and have done well from it.

I think the secret is not to stretch yourself to far, don't overborrow, ensure you have an exit strategy and a short & longer term plan.

The problem is that 80% of the population can't count i.e.  they are hopeless at maths.....and if you can't count you don't do well in any business.

[bil8999]

Yes, how about buying land, keep for say 10 years then sell, very little maintenance, no property tax, try for additional planning, just a thought