While changes to stamp duty and mortgage tax relief have hit buy-to-let landlords, rental property remains a good option for non-professional investors, according to a new report.
The research, by lettings inventory and property compliance company VeriSmart, examined the return on investment from different sectors over a decade. Buy-to-let was found to bring higher returns that investing in gold, cash or fine art.
The report looked at the annual gain in house prices and the increase in rental yields, to demonstrate that an investment in property made 10 years ago would have brought a 92% return today.
Investing in gold over the same period would have brought a 60% return while a cash investment would have seen a 16% increase.
Putting money into fine art was riskier. While investing in art will enhance your living space, making a profit depends on finding the right buyer. A fine art investment over the same period would have meant a 4% drop.
Classic cars, however, proved a better investment than buy-to-let property, with a return of 94% over the decade.
According to the news website Property Wire: “All things considered and despite successive chancellors hitting the buy-to-let sector with numerous legislative penalties including an increase in stamp duty, a reduction in high rate tax relief for landlords and a higher rate of capital gains tax on residential property profits, the conclusion is that bricks and mortar remains one of the best and most stable investments available.”
Read more about this story on the Property Wire website.