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.
However, 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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