Property outperformed stocks, bonds and gilts in past decade



Buy-to-let property has delivered better returns than stocks, bonds and gilts over a ten-year period, analysis by Sequire Property Investment shows.

A £50,000 cash investment into a buy-to-let property 10 years ago would have yielded profit of £92,185 over the period.

That’s after taking into account mortgage costs, rental profit of £54,106, income, as well as capital growth of £39,079.

Comparatively £50,000 of investment into stocks would have led to a profit of £81,833 in the past decade, followed by gilts and bolds (£63,693), data from A J Bell shows.

Buy-to-let data from Private Finance:

Cash Investment BUY-TO-LET Investment Costs Rental Income Profit Capital Growth Profit at 10 Years
£50,000 Four Bedroom BUY-TO-LET in Sheffield worth £190,000 £2,500 fees

£147,000 mortgage @ £297 a month on long-term fixed mortgage deal at 2.5%

£850 per month The first-year profit would be £4,638 rising to £6,225 in the final year.  The overall profit would be

£54,106

Assuming property price growth of 2.1% each year, in 10 years the property would be worth £229,079 – a rise of £39,079 £93,185

 

 

 

Daniel Jackson, sales director of Sequre Property Investment, said: “Covid-19 has brought about a revival in investment in the buy-to-let market thanks to Rishi Sunak’s stamp duty holiday; steadily rising average rents levels; increasing property values; and low mortgage interest rates. All these factors have contributed to drive an upsurge in investor interest in buy-to-let property.

“This trend is likely to continue with house prices predicted to rise steadily through 2022 and rental yields achieving more than 8% in some parts of the UK, particularly the Midlands and North East and West.

“These statistics show what we and our investors have always known – that long term property is a far stronger and more resilient investment than other asset classes.”

The stock market has been highly volatile since the start of the pandemic, as many international financial institutions were forced to reduce their forecasted growth for 2020 and the years to come.

It also nosedived on 24 February after Russia invaded Ukraine, as the FTSE 100 share price fell by 2.8% on that day.

Investment in Stocks

Cash Investment Company Stock Profit Profit at 10 Years
£50,000

 

 

 

 

Historically returning 5.3% per year based on data over past six decades £2,525 in the first year £81,833

 

 

 

 

Investment in Gilts and Bonds

Cash Investment Gilts & Bonds Profit at 10 Years
£50,000

 

 

 

 

Historically returning 2.7% per year based on data over past six decades £63,693

 

 

 

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