Buy-to-let outperforms the stock market
News Category: Industry News
Published: 21-Aug-2007
Since 2000 landlords have enjoyed returns on their investments that are higher than those offered by the FTSE 100, new research suggests.
Landlord Mortgages has calculated that a buy-to-let landlord who invested £25,000 in 2000 in property would have seen a profit of £33,288 (133 per cent).
In contrast, someone who invested the same amount in the stock market might have only enjoyed profits of £1,443, Landlord Mortgages claims.
The large disparity between the figures was attributed to both stock market set backs and the continued strong performance of the housing sector since the millennium.
"While buy-to-let property may not be an option for everybody, our latest research shows that you can make considerable gains on capital invested in this asset class," explained Lee Grandin, managing director of Landlord Mortgages.
"However, it is worth bearing in mind that buy-to-let often requires more commitment from investors than other asset classes and should be treated as a business rather than simply an investment."
Indeed, a recent report suggested that many landlords opted for buy-to-let because it allowed them to retain a greater level of control over their investment and its performance.
