Monday, April 28, 2014

Buy-to-let beats other investments

Buy-to-let is the best performing asset class over the last 18 years according to a study by former economist Rob Thomas.

His number crunching exercise shows that a £1000 invested in buy-to-let in 1996 would be worth £4,791 a compound growth rate of 9.7%.  This compares to the same amount invested in the  following asset classes:

  • UK equities £3,082
  •  UK government bonds £2924
  • Cash £1949
If a landlord had geared up on their buy-to-let with a 75% mortgage returns would have lept to an annual rate of 16.3% and the £1000 would have become £13,048.

Mortgage search - finance my investment

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