What Property Investors Can Expect In The Aftermath Of Brexit
1,317 days. 3 prime ministers. Two false exit dates. Political turmoil all around.
That is the “casualty list” Brexit had left in its wake.
On Feb 1 at 11pm (UK time), the official news was in: UK has finally left the European Union.
Do a quick Google search, and you’ll find plenty of reports about the finer details of Brexit. So we’ll not be covering the readily-available news in this article.
Instead, we’ll zoom in and focus on what really matters to our readers: How the Brexit fallout will affect the UK property market.
The looming shadow cast by Brexit, and the political uncertainty that followed, had haunted the property market for years.
Many UK home owners were negatively affected, especially when house prices began to fall rapidly.
On the other hand, many eagle-eyed property investors, particularly those from abroad, had been snapping up UK properties at heavily discounted prices.
After the 2019 UK General Elections, many proponents were hailing the market’s return to certainty.
There was genuine belief, among both foreign investors and UK home owners, that house prices would gradually rise to pre-Brexit levels, and possibly even higher.
Lo and behold, the property market briefly enjoyed what is now termed the “Boris Bounce”. Prices started to rise again.
Unfortunately, that has since proved to be a “paper victory”.
Because those numbers were taken from the Rightmove House Price index – Which measures asking prices and not actual sales.
It’s no surprise that sellers raised their asking prices in the wake of the elections.
But there’s a big difference between what sellers want to get for their properties, and the price buyers are willing to pay.
The statistics for actual sales figures have not been released at this point of writing.
Based on our sources on the ground however, there have been whispers that the expected sales surge has not exactly materialized, mainly due to this pricing discrepancy between the sellers and buyers.
And when you throw Brexit into the mix, one can’t help but wonder: Is the uncertainly truly over, or has it just begun?
It’s not all doom and gloom though. The market may still be uncertain. But that’s to be expected. It’ll take time to recover after such a long period of limbo.
But how long exactly?
Analysts predict a Brexit Transition that could take up to a year (watch this space for more updates).
So does this mean you should shelve your property investment plans until 2021?
Of course not!
If there’s one thing we learned from the years of Brexit chaos, it’s that uncertainty breeds opportunity.
Yes, there’s no denying that the number of investment-worthy properties have dropped compared to 1-2 years ago.
Yes, some sellers may be overly optimistic and demanding unrealistic prices.
But if you know where and how to look, there are still UK property gems waiting to be unearthed!
Here are 2 ways you can invest in the right UK property now:
Do your due diligence. Don’t skive on research. Knowledge is power. Find out everything you can about the different UK locations, and the properties in those areas.
With the internet at your disposal, getting educated (to a certain extent) about UK property investment isn’t difficult.
If you prefer a more direct approach, you can register for a UK property investment seminar to find out directly from experts in the field.
(We hold such events regularly, around once a month. Drop us a message below if you’re keen to attend!)
In other words, only invest in a UK property if/when it falls within your “circle of competence”.
The above approach takes discipline and lots of effort. Not everyone has the time or preference to go through the whole education process.
For a much quicker way, leverage on the knowledge of others.
Those with relevant contacts in the UK property space, and a proven track record of facilitating sales to foreign buyers.
This way saves time, effort and greatly reduces the risk of buying the wrong property.
Instead, you can look forward to a discounted UK property which can rise exponentially in value over the years!
We’ll be glad to help if you’re keen!
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