Pension Or Property, Which Gives Best Returns?

Many people have heard that property investment, usually in buy-to-let houses, is a great form of investment. But how does it compare to a pension? If you had the choice, would investing £100 in a pension, or in a property give you the best return? New research says that a 40% tax-payer would earn twice as much by putting their money into a pension. This is mainly because buy-to-let landlords have recently been hit by tax changes and can no longer claim certain allowances.

ThisIsMoney reports

“Research by online investment company IG found that investing £200,000 into a buy-to-let property could see your money grow by 237 per cent over two decades once capital gains tax is taken into account… However, a 40 per cent tax payer could see potential returns as high as 435 per cent if they put the £59,700 sum needed for a deposit on that property into a tax efficient self-invested personal pension instead.”