Whenever a country experiences any form of political upheaval, it creates uncertainty – in all areas of life. The property market is no exception – and after the Brexit result, many property investors were left wondering whether to invest in property in the UK or wait for a while.
Here’s a realistic lowdown of the situation, and some down-to-earth advice regarding your property investment opportunities.
What About the Drop in the Pound?
The UK pound crashed in the wake of Brexit, which caused widespread panic across the country. However, it’s important to look at this situation realistically. A sudden drop in value is to be expected after a significant political event like the EU Referendum; and it’s predicted that the economy should recover relatively swiftly.
In the meantime, UK property investors can adopt a similar approach to their overseas counterparts, and snap up the properties at a reduced price!
Property – A Safe Asset
Property is seen as a ‘safe’ asset. By putting your money into bricks and mortar, you’re essentially investing in something that’s tangible, relatively permanent, and unlikely to be as
Additionally, mortgage rates are incredibly low at present, especially if you already have a good-sized deposit. If you intend to hold on to the property for a few years, then it looks likely that you’ll enjoy good capital growth – and make a profit on your investment. affected by the political situation as stocks and shares.
Will Property Prices Drop?
Experts predict that property prices will decrease over the next year; but most are in agreement that the situation should only be temporary. London is predicted to be the worst affected by the price downturn.
However, this presents a good opportunity for those seeking investment properties for sale. As long as you don’t intend to buy the property then flip it for a profit (which is inadvisable at present), the value of your property should increase over time.
Taking a Longer-Term View with Property Investment in the UK
At present, the focus should be on longer-term profits, rather than short-term gain. The rental market is still incredibly buoyant in the UK, which means there’s a steady supply of tenants, actively seeking a house to live in. This is especially true in the major cities and larger towns.
Whilst your property earns a steady income in rental yield, property values should eventually start to rise again, resulting in a solid property investment opportunity – and plenty of profit from capital growth.
The Buy2Let Property Limited
If you’ve got questions about the property market and how Brexit has affected house prices, talk to The Buy2Let team. We’re property investment agents in London, and we’re here to offer advice and provide support; helping you find the right buy-to-let property for sale, at a price that suits you.
If you’d like to find out more about our investment properties for sale, or how we can assist with buying a house at auction, get in touch with The Buy2Let Shop team today.