Buy-to-let investors are getting the best return of all asset classes, according to Landlord Mortgages.
Investors who purchased a buy-to-let property with a deposit of 25,000 could expect to see a 39,309 profit over six years. This is significantly higher than the 415 achieved by those who invested in the FTSE 100 over the same period, says Landlord.
The second most profitable asset class to invest in is gold, which turned a profit of 22,484, on the same initial stake.
Landlord managing director Lee Grandin says: While buy-to-let property requires a relatively large minimum investment, this research shows that you can make considerable gains on capital invested in this asset class.
However, this asset class often requires more commitment from investors than other asset classes and should be seen as a business rather than simply an investment. In addition, this sector is not regulated by the FSA so potential landlords need to make sure they do their research thoroughly and understand the nature of the market.