Given current high interest rates and falling UK property values in some regions, is it still more beneficial to invest a £100k lump sum into a BTL property (e.g., small 2-bed in the North) for capital growth and rental income, compared to investing in a diversified FTSE 100 tracker fund over the next 5-10 years?
Quick Answer
Investing £100k in a UK BTL property versus a FTSE 100 tracker fund requires careful comparison of cash flow, capital growth, and associated costs. BTL offers potential for leveraged returns and tangible assets, while a FTSE 100 fund provides diversification and liquidity, important considerations with Bank of England base rate at 4.75%.
About This Topic
Comparing £100k in UK BTL property vs FTSE 100 tracker fund. Understand high BTL entry costs (5% SDLT surcharge), Section 24 impact, 4.75% interest rates, and tax-efficient fund growth. Make an informed investment decision.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
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