Forget buy-to-let! I’d invest £750 a month in cheap UK shares in an ISA to make a million

first_imgSimply click below to discover how you can take advantage of this. The recent market crash may have dissuaded some investors from buying UK shares in an ISA. They may, for example, now seek to make a million from buy-to-let property. Especially as government support helps to boost activity in the housing market.However, buying undervalued stocks today could lead to higher returns. Low valuations, tax efficiency and recovery potential may mean indexes such as the FTSE 100 and FTSE 250 offer greater long-term potential to make a million than buy-to-let property.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…Buying cheap UK sharesAlthough some UK shares have rebounded after the market crash, a number of stocks continue to trade at cheap prices. Therefore, they could offer significant scope for capital growth over the long run. In many cases, companies with strong financial positions and sound long-term growth prospects trade significantly lower than their historic average values. This may present an opportunity for investors to access such businesses while they offer wide margins of safetyFurthermore, when purchased in a Stocks and Shares ISA, there’s no tax to pay on the gains or dividends received from stocks. This could help to further improve your long-term growth rate. Especially with a very real threat of rising taxes to balance the government’s recent increase in spending as a result of the pandemic.Investing in buy-to-let propertyBuy-to-let property is currently less attractively priced than UK shares. In fact, recent gains in UK house prices mean average incomes versus average property prices are close to record levels. With unemployment likely to rise over the coming months, the capacity of potential buyers to afford current prices could decline. As such, house price growth, and even rental growth, may slow compared to its previous levels.Furthermore, even though the stamp duty holiday may ease the tax burden on buy-to-let investors, this is a temporary measure. Income tax applies to rental income, while capital gains are charged on profits made on the purchase price of a property. Over the long run, this could mean the net return on buy-to-let property is less impressive than that of UK shares purchased in a Stocks and Shares ISA.Making a millionUK shares have a long track record of delivering high returns. For example, the FTSE 100 has produced an annualised 8% return since its inception in 1984. Assuming that rate of growth on a regular investment of £750 per month, it would take around 30 years to build an ISA portfolio valued at over £1m.With share prices being relatively cheap at present due to the recent market crash, it may be possible to obtain a higher rate of return in the coming years. This could make indexes such as the FTSE 100 and FTSE 250 even more attractive relative to buy-to-let property. And could shorten the amount of time it takes to make a million. Image source: Getty Images. Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. “This Stock Could Be Like Buying Amazon in 1997” Forget buy-to-let! I’d invest £750 a month in cheap UK shares in an ISA to make a million See all posts by Peter Stephens I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. 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. Peter Stephens | Wednesday, 19th August, 2020 last_img read more