Would you heed a ‘wealth warning’ on fund charges? Millions face British Gas price hike: Energy bills for dual fuel customers can you buy investment property with no money down increase by an average of 5.
Would you buy and renovate a property in France? Will workers stand for a tripling in pension deductions from wage packets, or rebel against auto-enrolment increases? Buying a house as a long-term investment? Read this: Buying a house as a long-term investment? Buying your home as a long-term investment is not necessarily the best bet you can make, as many believe, with stocks offering far better returns over the long term according to research from global bank Credit Suisse. By this measure stock markets beat the likes of property, bonds and cash hands down through the years.
The quality-adjusted real capital gain measurement used in the report produces return figures with the impact of inflation and variation in housing quality accounted for, and can produce very different results from a flat measure of returns. The ‘Global Investment Yearbook 2018’, was produced by the Credit Suisse Research Institute with authors from the London Business School and aims to provide an in-depth and long-term look at investment returns. In the UK, between 1900 and 2017, investing in the stock market would have netted an annualised return of 5. 5 per cent while house prices saw increases of 1. 8 per cent and ‘bills’ – essentially cash – returned 1 per cent a year. To push home its point, the team reveal that in the US house prices fell by more than 36 per cent in real terms between 2005 and 2012. The stock market returns do include reinvested dividends, but the house price gains do not account for any potential returns from property rental income making it hard to judge how returns from a buy-to-let property could differ.