You are here: Home - Mortgages - Buy To Let - News -

Property investors in profit 80% of time in last 50 years

0
Written by: Owain Thomas
16/08/2018
Property investors holding their portfolio for five years would on average have been in profit more than 80% of the time during the last fifty years.

Landlords and other investors would only have suffered a loss in eight five-year periods since April 1968, according to research from British Pearl.

The only periods in which house prices fell were those starting in 1989, 1990, 1991 when Britain was grappling with the recession of the early 90s, and 2007 and 2008 following the fallout from the global financial crisis.

The analysis also considered costs of stamp duty and conservative estimates for mortgage payments, legal fees and interest, which brought in the terms beginning in 1988, 1992 and 2006.

A landlord buying in 1969 would have enjoyed the best profit on average gaining £4,589 — a return of 148.6% as prices rose from £3,818 to £8,936.

In contrast, those entering the property investment industry in 2007 suffered the worst loss, losing £32,111 — 17.6% of the original purchase price of £182,243.

This coincided with the sharpest fall in house prices which occurred between 2007 and 2012 when average UK values slumped by 7.9% on average.

The firm said this should act as a warning to investors who might be considering second-guessing the market by exiting with the intention of buying back in at lower prices.

British Pearl investment manager, James Newbery, said: “This research shows investors who play their cards right and hold their nerve in the midst of economic or political upheaval are still likely to come out on top.

“While our analysis shows housing has been a solid investment over time, we know returns can be bolstered with careful property selection, identifying regional trends and areas of rental yield strength.

“The message, not just for investors but homeowners, too, is to play the long game. UK property has a track record of returns and, no matter how tempting it is to think prices are unsustainable, the level of demand for housing in Britain makes property one of the most attractive asset classes on an ongoing basis.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
How to stay in control of your car hire budget

Booking and paying for car hire online isn’t the end of the journey. When you’re at the rental desk you’ll...

Close