Why Buy-to-Let is still the best investment to make!

3rd April 2019

Rent provides a monthly income that’s constantly and steadily rising year on year. Combined with house price rises that boost the capital growth of a buy-to-let investment, it’s easy to see why potential landlords and investors remain interested in purchasing a buy-to-let property.

We’re currently in a world where your savings earn minimal interest, stock markets are unpredictable, and Brexit uncertainty continues to loom.

In that world, buy-to-let remains one of the most solid investments you can make.

Let’s explore the positive numbers

According to the Office of National Statistics (ONS) in England, private rental prices grew by 0.9% in the 12 months leading up to September 2018.

Average property prices have also continued to rise to £228,147, up 1.7% on the previous year (UK House Price Index, January 2019).

In fact, in the last decade, new research has found that buy-to-let is beating investment in gold, cash and fine art, in terms of return on investment (ROI).

The research, carried out by lettings inventory and property compliance specialists VeriSmart, found that current house price and rental yield rises would have made a 92% return today if invested in 10 years ago.

That’s far higher than the 60% investing in gold would have returned and is worlds away from the 16% increase in cash or 4% decline in fine art.

The research also shows that property market growth has been far and away the most reliable FTSE 100 option.

Again, gold or cash proved to be the most volatile on the stock market, with political re-landscaping, economic conditions and outside influence proving to be their main weakness.

The numbers say it best: buy-to-let remains profitable

As a result, buy-to-let investment continues to endure as the backbone of the UK property market.

It’s aided, of course, by the good, honest landlords providing accommodation to those who need it, especially with the annual rise in demand for private rental properties.

Additionally, it helps to support aspirational homeowners as they work towards owning their own home.

The evidence is clear: property is still one of the most profitable and steady investments you can make. It’s made even more attractive because a) it’s comparatively easy to understand and b) it can be managed either directly by the landlord or entrusted to a letting agent.

That’s where we can help.

If you’re thinking about investing in your first property, or want to grow your existing portfolio, we’re here to offer advice and answer all property or management-related questions.

We will even help guide you through the process, start to finish.

Whatever your experience, we’d love to hear from you; visit us at your local Michael Jones branch or call 01903 213 111 and speak with a buy-to-let expert today.

 

Find out more about buy-to-let on our blog Buy-to-Let: Everything you need to know

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