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Monday, April 13, 2015

Astronomical BTL returns all about timing

A new report claims landlords who bought their rental properties on a 75% LTV mortgage back in 1996 have now made average returns of almost 1,400 per cent over the course of the past 18 years.
The report's authors, Wriglesworth Consultancy, claim these residential landlords outperformed all other investment classes over the period.

By their calculation, for every £1,000 invested in the deposit for a 75% LTV mortgaged buy-to-let property in 1996 is now worth £14,897.

This compares very favourably with other '£1000' investments over the same period - commercial property - £4,494, UK Government bonds - £3,329, UK shares- £3,119 and cash - £1,959.

Though the report has garnered much hype in both the left and right wing press, it would be interesting to see the relative returns over a different time period, they've clearly factored in the 'golden years', that I doubt we will ever see again.

Property, as with any investment has an optimum time to buy and a optimum time to sell - sadly, the majority of us rarely get it just right.

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