With the uncertainty around Brexit, it is literally impossible for property investors to start making informed preparations as to how to respond to Brexit.
It is, however, entirely possible for people to work on the basis of “hope for the best but prepare for the worst” and, if necessary, update their property portfolios accordingly.
With that in mind, here are some points to consider.
A hard Brexit could see the pound drop
Anyone who’s paid attention to the currency markets over recent years will have seen for themselves that the value of the pound has gone up whenever there have been indications that the UK is heading for a soft Brexit and that it has gone down again whenever there have been indications that the UK is heading for a hard Brexit.
While a weak pound is bad news for most importers, its great news for the inbound-tourism industry since it both encourages Brits to “holiday at home” and international visitors to come while the UK is at its most affordable. This could, therefore, be a good time to look at property in popular tourist destinations.
Interest rates could be volatile
Right now, interest rates are about as low as they can possibly be (without actually going into negative-interest-rate territory), this means that there is far more scope for them to go up than there is for them to go down, particularly if the pound softens and the government wants to increase its attractiveness on the currency markets. Investors using leverage (mortgages) may, therefore, wish to think about their potential exposure and whether it would be appropriate to reduce it.
Property investors can still buy into Europe – and beyond
Even though a hard Brexit will, presumably, place some limitations on the freedom of movement of people, goods and, in principle, currency, the fact remains that these days individuals can send money around the world in seconds via an app on their smartphone.
The fact also remains that international governments are likely to be as happy to continue to receive investment funds from the UK as the UK will be to continue to receive investment funds from international investors. That said, if there are markets in which you are particularly interested, it may be worthwhile opening a local bank account to make it easier to move quickly if the need arises.
Property means more than residential property
Although the term “the property market” is often used as shorthand for “the residential property market”, there is also a thriving commercial property market and property investors based in the UK may wish to keep this fact in view as it could provide a useful additional layer of diversification after Brexit. Investors “moving across” from residential property might wish to focus on forms of commercial property which closely resemble the residential market, such as purpose-built student accommodation and retirement accommodation.
(Featured image by DepositPhotos)
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation for writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [++ KuCoin Affiliate Program Review]
This week, we answer the two questions on everyone’s lips — What do SJWs and e/accs have in common? And...
BIPV Boom: By 2032, Building Integrated Photovoltaics Will Be Worth Over $143B
The next moves by the European Commission and the trend toward a real estate stock composed of Zero Emission Buildings...
French Fintech Company Qonto Launches SME Financing in Italy
Qonto is expanding its financial solutions for SMEs and professionals in Europe, launching the option for companies in Italy to...
Trusters and Leone Investments Finally Receive Approval Under EU Regulation
After almost a month under the new EU Regulation, two platforms, including the historic Trusters launched in 2018 and the...
Coinbase Wallet Has a New Feature: Send Crypto via Web Link
The exciting part is actually in the small print: This is because Coinbase covers the fees for transactions via stablecoin...
Crowdfunding2 weeks ago
f2o Sports Announced that Its Crowdfunding Campaign Has Started
Biotech3 days ago
Aspen Pharmacare Buys Sandoz’s Business in China for Over €90 Million
Fintech1 week ago
Why the Amounts Invested in Belgian Fintech Companies Decreased
Crypto2 weeks ago
Greed Dominates Bitcoin Market Again After Two Years