3 reasons I’d ditch buy-to-let property and buy cheap UK shares right now

Buy-to-let property used to be a surefire way to build a sizeable financial nest egg. Unfortunately, tax and regulatory changes over the past few years means this is no longer the case. As a result, I think buying a basket of cheap UK shares could produce better returns in the long run. 

Today, I’m going to highlight the three reasons why I believe this is the case. 

Buy-to-let returns

There are two ways investors can profit from buy-to-let property. Rental income and capital gains. Many investors rely on rental income to cover mortgage payments and costs, such as decorating and emergency repairs. The income covers the day-to-day expenses, and the real profit comes from capital gains. 

However, over the past few years, rental yields have dropped significantly. The average rental yield in the UK is now around 3.5%, although it’s possible to achieve higher returns. At the same time, the

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Forget gold and buy-to-let! I’d buy cheap UK shares in an ISA today

The stock market crash means a number of UK shares now trade at cheap prices. Over the long run, they could offer significant capital return potential as their valuations move towards their historic averages.



Gold bullion on a chart


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Gold bullion on a chart

At the same time, popular assets such as gold and buy-to-let property may struggle to keep pace with indexes such as the FTSE 100 and FTSE 250. Their high prices may mean they lack a margin of safety.

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As such, now could be the right time to buy a range of undervalued British stocks in an ISA. Doing so could lead to impressive returns in the coming years.

Cheap UK shares

While some UK shares have rebounded after the recent market crash, many others continue to trade at low prices relative to their historic averages. Over time, this situation is likely to

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