In an interesting take on why there appears to be signs of life in the buy to let sector Knight Frank’s residential development team suggest it could be because it looks like a more attractive prospect than leaving the cash in the bank.
It is an interesting theory. They cite the example of ‘The Waterside’ on the River Severn in Royal Worcester which is apparently achieving rental yields of around 5 percent on buy-to-let purchases.
It could be argued, I guess, that this is more attractive than the current super low interest rates being offered by the banks. As Lyndsey Bellingham, of Elbey Solutions Ltd. says: “Following the recent drop in interest rates many investors are now seeking alternative options to achieve more favourable returns.”
It would seem on the surface that there is more risk involved in choosing the property investment route over shoving your money in the bank but as the old saying goes ‘ you have to speculate to accumulate’, and who am I to try and burst their bubble.
Anyway, given the recent goings on the banking sector who can evaluate risk these days.
