Hindsight is a great thing, but investors cannot rely on it. All they can do is look back and see how their money has been working for them.
The latest research suggests that those who have invested in buy-to-Let properties over the past decade have benefited most, Indeed, some property experts believe that the buy-to-let sector helps inspirational homeowners by providing property to rent whilst they save for a purchase with the sector outperforming more traditional investment vehicles such as the safe options of cash, gold or finse art.
Although the FTSE 100 offered better rewards, the property market was a good second option once the analysis took into consideration capital growth and increased rental returns over the past ten years.
Although there have been changes to the market – the government’s implementation of the Mortgage Credit Directive and increases in Stamp Duty – a buy-to-let investment a decade ago would now show a 92% return.
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The stability of the property market has helped to produce these results, with the volatility of the alternative markets affected by political and macro-economic concerns imposed by issues such as Brexit and global political issues. The latest research suggests that those who have invested in buy-to-Let properties over the past decade have benefited most,
Financial advisors still insist that the UK property market remains one of the most stable for investors. Despite the UK government’s concerns about second homes and the difficulty of getting on the property ladder, the buy-to-let market has proved remarkably resilient since the financial crisis just over a decade ago. Indeed, some property experts believe that the buy-to-let sector helps aspirational homeowners by providing property to rent whilst they save for a purchase.
With little being done to resolve the issue of affordable housing or the house-building crisis, the buy-to-rent sector remains crucial to the UK housing market and remains a lucrative investment, as there will always be a demand for affordable rental properties owned by a reliable landlord.
It is possible to look back even further and see that an investment in a buy-to-let property has outperformed major asset classes over a longer period. Investors who have taken advantage of a buy-to-let mortgage with a 25% deposit will have seen a significant profit when property and rental inflation are taken into consideration.