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Want a good investment? Try bricks and mortar …

Bricks and mortar have become one of the best investment classes over the past year, according to new research.

The Stripe Property Group says capital appreciation of 9.3 per cent iun the past 12 months places residential property fourth in the list of best investments, ahead of rare whisky, rare coins, designer handbags, classic cars, jewellery, antique furniture and gold.

The only greater returns were the more exotic investments of fine wines, designer watches and fine art.

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Stripe’s managing director, James Forrester, says: “The property market has boomed during the pandemic and continues to do so in 2022. As a result, you’ll struggle to have made a better investment in the last year or two.

“While there are a select few investment options that have yielded a larger return, the actual increase in value is likely to have been far lower than the level of capital appreciation seen across the average UK home.

“Property also remains accessible to the masses and those without specialist knowledge or connections within an area such as fine wine or art. Not only is it the most straightforward investment you can make, it’s also one of the safest, as the property market isn’t susceptible to the same erratic, boom and bust nature of other investment options.”

Even the capital appreciation seen in London residential property - an average 4.2 per cent in the past year - exceeds that found in classic cars, jewellery, and antique furniture.

Gold actually fell in value in the past year, by one per cent.

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    A second property attracts a higher rate of SDLT when you buy it & the highest rate of CGT when you sell it - so all that growth is not actually profit in your pocket :(

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    Agreed but cash invested in property at least has a fighting chance of maintaining its spending power (apart from the dilution due to CGT).

    I don't know of any safer place to keep and grow my life savings.

     
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    A properly structured and managed buy to let property will pay you a monthly income at the same time as increasing in value. That's not to be said for the other types of investment.

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    Mark - That is true, but Gold coins do not default on the rent, wreck the property and cause you untold stress and anxiety. It all deleting which market you’re in and often how careful your tenant selection has been, the EPC C nonsense is also something on the horizon that only those with very modern properties will be able to avoid.

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    Mark what about maintenance, down time, administration, cleaning etc. ,between tenancies. Councils/ social housing providers spend an awful lot on maintenance !

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    Agreed Edwin, it's not free 'un-earned' money, but if the investment is managed by a competent agency and all the expenses are taken into consideration a decent return can still be had as an ongoing income as well as the capital growth. I don't pretend it is easy money, but I have done very well over the years and have many happy tenants as well.

     
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    Agreed Mark, and as you say it isn't unearned money, I've now spent 4 weeks tiding up a property between lets, and no regrets I have done very nicely out of this game

     
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