Property has long been thought of as a decent investment, particularly when compared to saving in cash, and it can even give stock market investment a run for its money. This view has been fuelled by continued house price rises in recent years, which have seen the value of bricks and mortar significantly enhanced.
It's an investment for the long-term, and but when you consider the fact that returns on cash savings are extremely low once inflation is taken into account, it's easy to see why it's so popular. For many, bricks and mortar is far more secure than investing in the stock market, too, as there's less volatility and you’ve got a tangible asset in your portfolio.
However, it's important to remember that, like any investment, returns from buy-to-let aren't guaranteed. There's a slim but ever-present chance that your property could go down in value, not to mention the fact that if you don't enjoy 100% tenancy, your profits could be compromised as you'd need to make the mortgage repayments out of your own pocket.
Then there are the various insurance payments and additional costs you need to consider, and that's before we get to the tax changes that have impacted the buy-to-let market of late, all of which are making it more difficult for all but unmortgaged landlords to make a profit.