Is buy-to-let property an alternative to an investment portfolio?

Category: Investment

There is no doubt buy-to-let residential property has been profitable for some.

However, it is not without considerable risks. These risks include increasing taxes, rent arrears, voids, dilapidations and many more. Any landlord effectively needs to run a small business. There is also the misconception that residential property only ever goes up in value. When you invest in property you invariably buy a specific one. This is the opposite of spreading your money far and wide This is what we believe works best when investing.

The low cost of debt which allows anyone to invest in property for a small amount is attractive to many. Far more so than the underlying return prospects of property. Indeed, over the longer term, equities have delivered higher returns on average.

Buy-to-let properties can complement an investment portfolio. However, they should rarely replace it or even dominate it.

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