Buy-to-let still yielding great returns

Buy-to-let returns continue to attract investors as the yields continue to beat many other mainstream investments, new research has revealed.

Whilst the government has cracked down harshly on buy-to-let landlords over the past 18 months, the allure of such investment remains strong, with returns often outperforming commercial property, UK government bonds and cash.

Buy-to-let also remains a popular alternative to an at times volatile stock market, which is often sensitive to the political upheavals around the world.

According to Sequre Property Investment, these market fluctuations continue to draw those looking to secure a comfortable retirement, towards buy-to-let investment.

Sequre’s research has categorised four types of buy-to-let investor: those looking to build up a retirement fund, young investors getting a foot on the housing ladder, those looking to secure their children’s future, and those aiming to create a property portfolio.

Graham Davidson, managing director of Sequre Property Investment, commented:

“Each person’s motivation for investing in buy-to-let can vary, and in many cases, there is a primary motivation followed by several others.

“Investing in property not only provides great returns when the deal is right, but it’s also a tangible asset that can be held for capital growth or sold for the profit. Of course, investors need to be savvy with where and what they choose to invest in, so they can fully maximise their return on cash invested.”

“Buy-to-let is still providing the best returns over annuities and many other investment types,” he added.

Andrew Turner, chief executive for Commercial Trust said:

“The buy-to-let market remains an attractive investment proposition for people with a variety of personal circumstances and aims.

“It is correct that the government has introduced a number of measures recently, which have reduced profitability significantly, but even after these have been taken into account, returns can often outperform other investment options.

“With the ongoing demand for new housing still not being met by the government – and with rental demand maintaining high levels, there is every reason for prospective investors to consider whether buy-to-let might be right for them.”

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This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.

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