Press Release Summary = If you are one of the many people who is giving consideration to making a buy-to-let investment, you may be interested in the results of a study published this week which reveals that those who have had their money invested in rental property over the past seven years have had it in the best performance asset class possible.
Press Release Body = If you are one of the many people who is giving consideration to making a buy-to-let investment, you may be interested in the results of a study published this week which reveals that those who have had their money invested in rental property over the past seven years have had it in the best performance asset class possible.
Buy-to-let investment has proved to be more profitable - and secure - than investment in the FTSE 100 over the same period, the Landlord Mortgages report found. An investor who bought a buy-to-let property with a deposit of £25,000 in 2000 could expect to see a profit of around £33,288 over the past seven years, the firm calculated.
That is around 133 per cent pure profit - much higher than the 5.8 per cent profit that the average FTSE 100 investor would have realised over the same period. Not only that, buy-to-let investment has also outstripped gold as an investment vehicle over the same period.
The precious metal yielded profits of £19,818, around 79 per cent, on an initial investment of £19,818. That is still an impressive performance, but leaves it in second place to buy-to-let investment in terms of profitable asset classes.
Lee Grandin, managing director of Landlord Mortgages, acknowledges that buy-to-let property is not for everybody. Buy-to-let can require a much more significant initial capital outlay than other investment vehicles. For those that are interested, however, he says the research proves they can \"make considerable gains on capital invested in this asset class\".
\"Potential landlords need to make sure they do their research thoroughly and understand the nature of the market fully before they make this type of commitment,\" he added, before predicting that rents \"are set to increase in line with rising house prices by the end of the year\", something which prospective investors will no doubt be glad to hear.
Investors will also be pleased to know that the rentals sector is predicted to keep expanding and growing in the coming years. According to a recent Scottish Widows report, students and young professionals are going to keep the market buoyant as increasing numbers of people either go to university, or are forced to move around the country looking for work.
2025
