It is the 21st anniversary of buy to let property investments, or the nickel and brass anniversary which ever way you would like to put it.
There have been in the financial press for all the wrong reasons lately as changes to stamp duty and tax brackets has seen many would-be buy to let investors taking their capital elsewhere.
This next lot of information may changes a few minds, research from buy to let specialist, Sequre Property Investment, has found that landlords who invested £100,000 into UK property 21 years ago, could now have a portfolio worth £1,230,644 – more than 11 times the value originally invested.
During the time between 1996 and 2017 the average house price has risen by 282.66%.
With the recent turbulent times the UK property market has negotiated through one could be forgiven for thinking that property is no longer an asset class worth an investors time or money, but you would be dead wrong to think that.
Davidson a buy to let property specialist says:
“Landlords are still reaping the benefits of a thriving property market. These types of returns are more attainable to the average investor than some might think – by putting savings into property as opposed to leaving them sat in the bank gaining very little, investors can see their returns double in the space of a few years.”
“Bearing in mind that that there would have also been a substantial income achieved from the increase in rental payments over this 21 year period, there are still options available to extend profits further. Taking the example provided, an investor could sell one property, pay the capital gains tax and pay off the remaining mortgage.
They’d still own over £1.2 million worth of property outright and continue to collect the rental income from the remaining three properties, estimated at around £70,000 per annum – a solid investment strategy that could provide a strong second income, fund retirement or be passed on to children for future generations to benefit from the investment.”