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TODAY'S OTHER NEWS

Average age of buy-to-let investors drops 10 years

The average age of new landlords acquiring property to let has dropped by 10 years since 2014, according to yieldit.

Having analysed the demographics of its buyers over the last four years, the online estate agent found that the total average age of purchasers had fallen from 52.3 to 42.

Analysis of the data also reveals that the drop in age is present across both residential and student buy-to-let, but is more pronounced in residential sales where the average age dropped from 57.5 to 40.9 compared to 52.3 to 44.2 in the student market over the same period.

Ryan Hughes, head of sales at yieldit, said: “Contrary to the many headlines that paint buy-to-let as being a business reserved for older people, it would seem that there is a wind of change blowing through the market which is resulting in a growing number of younger investors entering the market.

“Investing in bricks and mortar is as popular as ever and although a small number of our buyers are owner-occupiers, the majority are property investors looking for tenanted buy-to-let.

“Rising tenant demand and record house prices continue to attract a broadening number of people to the market, including a burgeoning number of first time investors.

“The figures just go to show that the classic portrait of a landlord is changing, something that we believe can only strengthen and revitalise the market.”

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    best form of flexible pension out there, without all the blood suckers taking their inflated commissions and fees out of your money.

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    While I agree that it is attractive, don't forget all the taxes which can be far steeper that the commissions and fees you refer to and is certainly way more expensive than for those investing through pensions and ISAs using online brokerages with low transaction fees (some offer no fee costs) and low platform fees. For those investing in ETFs the ongoing management fee can be as low as 0.05%. There are no CGT to pay and through ISAs, no income tax. Through pensions, there's no tax at source.

    Compare that with purchases made with after-tax money, SDLT, solicitor fees, surveyancer fees, estate agent fees (if you use that route), mortgage payments (going up), income tax (going up), CGT on sale, more agency and survey fees on sale, wear and tear costs, management fees and tenancy finder fees (if you use these services).

    Added up, there are many more commissions and fees in BTL than in pensions and ISAs, if the correct routes are used.

    (full disclosure, I use all of the methods and find the pension and ISA route far outstrips the BTL for efficiency. The BTL route makes better use of leverage.)

     
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