Cardiff landlords the no hassle 1200 per cent return investment, if you were a landlord and began investing in property in 1996 when the first buy-to-let mortgage was released 18 years ago you would be sitting pretty right now!
The research carried out by Wriglesworth Consultancy and commissioned by Paragon Mortgages uses the following reinvestment assumptions, every £1,000 invested in an average buy-to-let property purchased with a 75 per cent loan-to-value (LTV) mortgage in the final quarter of 1996 would have been worth £13,048 by the final quarter of 2013.
This is a compound annual return of 16.3 per cent. The same investment in UK commercial property would have grown to £3,654; in UK equities (shares) to £3,082; in gilts (UK government bonds) to £2,924; and in cash to £1,949.
Around a third (32 per cent) of the total return to the mortgaged buy-to-let investor was income (rent less costs), and 68 per cent capital gains.
A buy-to-let purchaser buying entirely with cash would have seen each £1,000 invested grow to £4,791 by the end of 2013 – a compound annual return of 9.7 per cent.
The alternative of the investor who remortgaged to release equity to expand his/her portfolio more quickly would have turned £1,000 into an astonishing £33,051.
Future projections for landlords in Cardiff, South Wales and across the UK also look promising with projections suggesting that every £1,000 invested at the end of last year using a 75 per cent LTV mortgage would be worth £2,910 by the end of 2023 – an average annual return of 11.3 per cent.
So how can landlords across Cardiff and South Wales lock in the capital appreciation while removing the risk and hassle associated with buy-to-let investment property? The answer is quite simple, Rent Guarantee Cardiff offer landlords a no fee letting solution that guarantees up to 90% market rent with no void periods. So Rent Guarantee Cardiff remove the risk and tenant hassle from the letting process, so landlords can concentrate on receiving their rent on the same day each month and take advantage of the huge potential for capital appreciation.
If you would like to find out more about of no fee letting solution and how we can remove the risk and hassle from the letting process by providing a guaranteed rental income each month, please complete the short contact form below: