| Report says buying property to rent is better than investing in shares |
A report says investors could be better off buying property to rent rather than snapping up stocks and shares.
The Bradford & Bingley claims that letting property could provide a gross return of up to 10% of its value with the added bonus of strong capital growth.
The report says the key to success is buying flats rather than larger houses and picking the current property hot spots to invest in.
Bradford & Bingley says a 2-bedroom flat offers returns as high as 10% compared to 5% for a 4-bedroom detached house.
National hotspots include High Wycombe and Horsham where properties are let, on average, in one week.
Properties in Middlesborough, Southampton, Hove and Caversham are not far behind, typically being let in two weeks.
Renting remains the most popular choice amongst the 25 to 35 age group, who account for 47% of tenants.
The majority of tenants are couples or friends sharing.
Head of Bradford & Bingley Letting Agents John Crossley says: "As global stock markets remain volatile, investors are looking at alternative opportunities and buying property to let is continuing to prove an attractive option within the vast array of investments now available."
Story filed: 17:38 Friday 14th September 2001
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