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Monday 28 April 2014

How Southampton buy to let has out performed most other investments


Found this interesting article ....

Buy-to-let investments have outperformed all mainstream investments over the past 18 years, with annual returns of more than 16pc, according to a study.
Former economist Rob Thomas investigated how much £1,000 would be worth now if it was invested in various asset classes in the final three months of 1996 – the year buy-to-let mortgages were first introduced.
He said every £1,000 invested in an average buy-to-let property bought with a 75pc loan-to-value mortgage was worth £13,048 in the final quarter of 2013, a compound annual return of 16.3pc.
These bumper returns were largely due to the mortgage, which “magnified” investors’ buying power in a process known as leverage.
A cash purchaser would have seen each £1,000 invested grow to £4,791 by the end of 2013 – a compound annual return of 9.7pc.



http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10788736/Buy-to-let-returns-top-allother-asset-classes.html

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