Every 1 pound poured into buy-to-let in 1996 is now worth £15 – outperforming cash, bonds and shares over the same period, a study suggests.

Buy-to-let investmentsHowever, this impressive return only applies to investors who put down a 25% deposit and borrowed the rest via a buy-to-let mortgage. 

Cash buyers who poured money into buy-to-let 18 years ago have now turned £1 into £5.07 – a net annual return of 9.4pc.

The study by former economist Rob Thomas found that landlord returns outstripped the earnings from investments in cash, stocks and shares and commercial property. In the same timeframe, commercial property investments turned £1 into £4.49.

Cash savings were the worst performers, according to the report, where £1 is now worth just shy of £2.  

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The Telegraph

 

About the author

Nicolas Holmes

Nick joined Robert Holmes to inject fresh ideas and help grow the New Homes department of Robert Holmes as well as helping to inject technology into the business and to grow its client base. Together with one of the Directors Nick is in charge of all Development opportunities that Robert Holmes deals with along with sales. Aged 40, he provides succession together with the two existing directors. Nick has always been focused on building client relationships and sales. He built up his own gallery in Chelsea, where he had a loyal following of customers and artists.

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