Buy-to-let’s booming! I’d still rather try and retire rich by buying UK shares in an ISA

first_img Royston Wild owns shares of Barratt Developments. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Enter Your Email Address Buy-to-let’s booming! I’d still rather try and retire rich by buying UK shares in an ISA Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Click here to claim your free copy of this special investing report now! Royston Wild | Monday, 14th December, 2020 center_img Our 6 ‘Best Buys Now’ Shares 2020 has been an extremely bumpy ride for UK share investors. 2021 could be another difficult one too if a Covid-19 vaccine rollout faces challenges and Brexit turbulence hits the economic recovery. At times like these the appeal of bricks-and-mortar assets like buy-to-let property improves considerably.And boy, is buy-to-let demand rocketing right now. Data from Hamptons shows landlords accounted for a whopping 15% of ALL property purchases in November. This is the highest level since December 2016, the estate agency says.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…And it’s being driven by strong pent-up property demand and a rush to save on stamp duty before the tax holiday ceases on 31 March. Signs that “rental growth is picking up steam” aren’t likely to have done buy-to-let demand any harm either.Buy-to-let bills have leaptThe motivations behind the buy-to-let rush are obvious. But I’m afraid it’s not a train I’m not prepared to jump on. I’d much rather invest in UK shares today, simply because the costs and the hassle of operating a buy-to-let portfolio are growing by the year.Hamptons data in February revealed how the number of British landlords declined to seven-year lows in 2019. And the same issues that have prompted the recent buy-to-let exodus remain in play today. Higher HMRC bills, caused in large part by the loss of critical tax relief, is one issue. Rising agency bills and increasing maintenance and regulation costs are another.Landlords might be saving a packet by avoiding stamp duty today. However, the colossal effect of these other costs — bills that have caused the average landlord profit to fall to just £2,000 in recent times — still casts a huge shadow over what returns can be expected from buy-to-let.Why I’d rather buy UK sharesThis is why I’d much rather invest in UK shares today. Firstly, data shows long-term investors like me make an annual average return of 8-10%. This is much better than most buy-to-let landlords can expect to make today.Secondly, buying UK shares saves investors from the day-to-day hassle that often accompanies property rentals. And thirdly, I don’t have to stump up a huge wad of cash to buy a buy-to-let property and get the ball rolling.If you still want to get a slice of buy-to-let, fine. I wouldn’t pooh-pooh the idea as rents in this country continue to rocket. But I’d rather do this by buying UK shares such as PRS REIT, an expert in the letting of family homes to private renters. Or I’d snap up shares in housebuilders such as FTSE 100-quoted Persimmon or Barratt Developments.What’s more, if you buy these shares in something like a Stocks and Shares ISA you can avoid hefty bills from the taxman. The property rentals market can still help individuals make a great return on their cash. However, I don’t think investing directly in buy-to-let property is the best way to go about this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. 5 Stocks For Trying To Build Wealth After 50 See all posts by Royston Wildlast_img

Previous Article

Leave a Reply

Your email address will not be published. Required fields are marked *