Assetz for Investors saw its strongest sales month ever in July as buy-to-let investors continued to purchase new stock.
With first-time buyers increasingly priced out of the market, landlords are stepping in, conscious of the potential of raising rents. Higher interest rates have not affected high income investors who do not suffer with short-term cash-flow subsidy. They are taking a sensible 10 to 15 year view of house prices against a background of strong immigration, poor property supply and a thriving economy.
Assetz’ research suggests that many investors are keeping their money closer to home in 2007 and, with the UK remaining a low risk investment destination, the buy-to-let market has continued to thrive.
Stuart Law, Managing Director of Assetz, comments:
“Developers need strong sales on a continuous basis and whenever first-time buyers retreat investors step in.
“During the Blair years, if property was purchased with a 15% deposit, then the results have been stunning. Property has returned 1241% capital growth - 12.4 times your money as profit, while shares are up just 103% - twice your money.
“Investors may not be expecting the same level of return over the coming years but property (bought with a 15% deposit) would only have to rise by 1.6% a year over the next 10 years to produce the same return as equities rising at 8% per annum – something most investors would think is very easily exceedable given the supply/demand imbalance of housing in the UK today and in the foreseeable future.”
This is a press release by Assetz also available at http://press.assetz.co.uk/articles/3690.html. Alternatively, please see our full press release archive.
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