Low savings rate returns and rising property prices along with increasing rents has made the buy-to-let market very attractive to the investor. In 1996 the average buy-to-let property was selling for just £55,000 and the buyer would have needed a 25% deposit to proceed. Landlords have hit the investment jackpot by earning over 1250% since 1996 which far outstrips the performance of shares and investment bonds. On average £1,000 invested in a buy-to-let in 1996 is now worth £12,900 and this is all down to the property boom we have experienced. Years of rising house prices mean that even despite the slump after the financial crisis, property investors who purchased 18 years ago are going to have a large capital gain. Rising rents have also boosted profits over the years giving the landlords a very good return on their investments. The figures are taken from a recent survey and are based on the landlord paying off the mortgage within 13 years using rental income then banking the final five years. With returns like these it is no wonder the buy-to-let market is so busy right now. Who knows what the future holds but we here can confirm business seems to increase month on month. Can we be of assistance? If you are thinking of entering this market there are many things to consider and your mortgage is one of the most important. We have a team of fully qualified experts waiting to take your call and we look forward to hearing from you.
