Investor Update – Brexit Impact
As you most probably already know, there are many media outlets stating how the uncertainty of Brexit is impacting on the property market, often in a negative light. Plus with the added stricter lending measures, it’s important not to forget the positive reasons to invest on a buy to let property in 2019.
• Looking ahead, there is little reason to believe that Brexit will undermine demand for rental property. After all, the UK’s departure from the EU will not alter the fundamental facts that there are vast numbers of people wishing to rent a limited number of properties across the country.
• A 2018 survey by Market Financial Solutions revealed that 53% of UK investors would rather invest in traditional asset classes such as property in 2018 instead of newer assets, such as cryptocurrencies, with 63% regarding property as a safe and secure asset in the current market.
• Ultimately, despite the uncertainty and some gloomy predictions, it is important to recognise that Brexit could be a huge opportunity for property buyers and investors, and the strong buy-to-let market is a good indication of this.
• ‘Recent price drops in some regions mean that it’s becoming more of a buyers’ market, so you might be able to get a good deal. Besides, buying a property should generally be regarded as a long-term investment and, even if there is a short-term price drop, house prices will probably stabilise in the future.
• Mortgage rates are incredibly low right now.
• Tenant fees are being banned from June, rents are likely to rise further due to lack of stock, meaning now is a good time to be a landlord!
Some food for thought as we move into, what should be a time of uncertainty but also great opportunity for property investors.