| Comment | However, the general yield on buy-to-let is quite poor these days, so actually the 4% does go some way to making sure that additional properties are seen as a less attractive investment than other places - part of the issue that created the buy-to-let boom was that the return on investment was, for a good chunk of the last decade, outperforming the stock market.
4% won't deter your average person looking to buy a second home for whatever purpose, but it does make the difference in reducing the volume of boomer investors who only favoured buy-to-let because it was a couple of % better performing than their pension funds and better for guaranteed retirement income than buying an annuity. And of course it's those latter ones who are the shitty landlords with no interest in the property other than as a financial vehicle, which in turn leads to awful letting agencies who cut every possible corner |
|---|