Home Blog London Property News Buy-to-let landlords see returns of almost 1400%
Buy-to-let landlords see returns of almost 1400%
Buy-to-let investors have made staggering returns of nearly 1,400% over the last 18 years, according to a new study.
residential property has outperformed all other forms of investment since 1996
This has beaten all other types of investment and means that every £1,000 invested in buy-to-let property in 1996 was worth an average of £14,897 last year.
UK government bonds, on the other hand, provided average returns of £3,329 for every £1,000 invested in 1996. UK shares were worth £3,119, cash produced returns of £1,959 and commercial property was worth £4,494 at the end of 2014.
Buy-to-let property also made four times as much as the equivalent investment in commercial property, which was worth £4,494 at the end of 2014.
The analysis looked at returns from investors who bought a property with a 75% loan-to-value mortgage and shows that landlords who borrowed to purchase the property made significantly larger returns than those who paid in cash.
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