Poland topped the Property Investment Tracker, with a total 165 per cent return in cash investment, while the UK had a 63 per cent return. Bulgaria followed with 54 per cent and France with 51 per cent. The tracker recorded the buying costs, rental yields and capital growth for 14 investment destinations.
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The research suggested that many investors would keep their money in the UK this year, as it remains a low risk investment destination and, despite recent interest rate rises, purchasing costs remain low.
Stuart Law, managing director of Assetz, commented: “As first-time buyers are increasingly priced out of the market, demand for rental properties is likely to rise, providing a strong basis for BTL investment.
“The overall shortage of homes is set to drive house prices in the UK up by 8 to 10 per cent in 2007 and 2008, encouraging investors to take a long-term view.”
Rod Murdison, proprietor of Murdison & Browning, said: “For all that people complain, the entry costs are very low in the UK in comparison to the rest of the world. It’s quite interesting to see France come in fourth place, as the fees associated with purchasing there can be very high. I don’t think people are looking at BTL for an income, as long as it covers its costs.”
