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Posted on April 13th 2015 by admin-movingin

Buy to let the outstanding investment since 1996

Buy to let has been the outstanding investment of the past 18 years, providing average returns outstripping all other major asset classes, a peer-to-peer lending group claims.

Every £1,000 invested in an average buy to let property purchased with a 75 per cent loan-to-value mortgage in the final quarter of 1996 – when buy to let was first actively promoted – would have been worth £14,897 by the final quarter of 2014, a compound annual return of 16.2 per cent. 

The same investment in UK commercial property would have grown to £4,494; in UK government bonds to £3,329; in UK equities to £3,119; and in cash to £1,959. 

A buy to let purchaser buying entirely with cash would have seen each £1,000 invested grow to £5,071 by the end of 2014 – a compound annual return of 9.4 per cent.

2014 was a good year for buy to let investors with property prices rising by an average 8.3 per cent claims the firm behind the survey, Landbay.