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Is Buy to Let better than stocks and shares?

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Is Buy to Let better than stocks and shares?

More investors are opting for property rather than stocks and shares to fund their retirement, according to new research by Nationwide Building Society.

Over two million people are now private landlords, up by 600,000 since the financial crash, as house prices have increased by almost 260% over the past 24 years.

Over the last 15 years, property has given investors excellent returns and since 1991 returns from the FTSE All-Share only narrowly beat those from property.

Many landlords, use their property portfolio as part of their pension provision and in many cases it was their only pension fund.

Many people still prefer property as a sensible way of saving for the future because, unlike pensions, with bricks and mortar your money isn't locked away until you reach the age of 55.

Excellent rental yields and capital growth from buy-to-let is appealing to any investor who is concerned about the volatility of the stock market. 

In 2000, less than 2% of mortgages in Britain were buy-to-let and now there are 900 BTL mortgages available, accounting for 15% of all home loans. 

Despite the additional costs in property such as buying fees, maintenance and void periods, the asset growth and rental income is still very attractive for investors concerned about the volatility of stock markets.

However, as with any investment, there are no guarantees, so investors should be aware of the potential pitfalls.

If you would like to know more about the opportunities available in purchasing a buy to let property give our director, Chris Whittaker a call or drop him an email. Chris is a landlord in his own right, runs an independent mortgage business which specialises in providing finance for buy to let properties and also runs an agency which manages residential property throughout Leicestershire, South Nottinghamshire and parts of Lincolnshire. Chris will ensure you have the facts – warts and all.

You can get in touch by phone: 01664 563481 or by using our contact form by clicking here!