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New data shows property outperforms other investments

Recent data demonstrates the upside to making property the backbone of your investment portfolio

IP Global, an award winning international property investment company, has been talking about the unique benefits of well-advised property investment since we started doing business, and a recently released report from a UK finance provider shows just how strong the returns on UK property investment have been since buy-to-let mortgages were first made available in 1996.

Across those 18 years, buy-to-let properties have averaged an annual retur n rate of 16.3% – that equates to a startling GBP13,048 for every GBP1,000 invested since 1996. This shows just how well property is performing in comparison to other investment assets, with shares, bonds and bank savings earning 6.8%, 6.5% and 4% per year over the same period.

And this good news for property investors is set to continue, with the same report forecasting that UK landlords will continue to see average annual growth of 11% over the next decade, as the limited supply pipeline across the country comes up against aggressively rising demand in the wake of the national economic recovery.

Our own figures for capital appreciation strongly support this conclusion, and go even further in demonstrating the value we can offer investors.

Since 2009, our clients have invested over half a billion pounds in UK property through our services. We conducted an in-house valuation study on a number of our recent developments using up-to-date resale prices and valuation data. That study demonstrated that those investors have achieved average leveraged annual returns of 36.6% per annum (65% LTV).

Take a look at our property portfolio if you’d like to know more about the investments we currently have to offer.

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Returns referred to in this article are based on an in-house study of a number of London developments that IP Global has marketed since 2009 and are only meant as an indication of performance. As with all investments, property values can go down as well as up and we cannot make any guarantees of future performance.   The report cited was conducted by Paragon Mortgages.

 

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