The rapid growth in popularity of buy-to-let in recent years has been fuelled in part by the failings of the pensions industry, fresh research shows.
Despite the anti-landlord policies adopted by the government, many investors continue to be drawn to the buy-to-let market as the returns routinely outperform those of other investments.
Buy-to-let returns continue to beat many other mainstream investments, including commercial property, UK government bonds and cash, while remaining a highly popular alternative to the volatility investors often risk when investing in the stock market.
This partly explains why pension ‘pot hunters’ continue to drive buy-to-let property sales, according to latest research from leading specialist Sequre Property Investment.
Sequre has defined four distinct categories which represent the main motivations for investing in buy-to-let property: investing for retirement, young investors getting a foot on the housing ladder, buying property for children’s future, and building 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.
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