Are shares now a better bet than buy-to-let? How Osborne’s latest attack on landlords has made property FAR less lucrative

Landlords have now faced two tax hikes in four months.The latest raid — an increase in stamp duty announced in the Autumn Statement last week — will add an extra £7,500 to the typical fees of buying a £250,000 home.

Coupled with the cut in tax relief that richer landlords can claim, revealed in this summer’s Budget, this fresh attack is likely to deter many from putting their pensions into buy-to-let.2EF8064F00000578-3341827-image-a-38_1449005472571

Until now, property has been viewed as a cash cow by investors. And it’s not hard to see why. Over the past 25 years, the average house price has risen from £68,823 to £202,689 — an increase of 295 per cent.

But the FTSE All Share has also grown at an average of 9.6 per cent a year over the past 30 years.

So, if you’ve got £50,000 worth of savings to spare and want to get an income and some growth, which is better? To make a fair comparison, you need to look at all the costs and all the taxes.

Read more: http://www.thisismoney.co.uk/money/investing/article-3341827/Are-shares-better-bet-buy-let-Osborne-s-latest-attack-landlords-property-FAR-lucrative.html#ixzz3tEddBDgQ
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