The question on every investor’s mind at the moment is what Brexit will bring to the property market. Whilst it is a very uncertain time, there is one thing that can be confirmed; there is no guarantee that the property market will be affected positively or negatively.
According to Emoov Research when they asked homeowners what they thought would happen to property prices after Brexit, 30% thought that the prices would actually rise, 28% expect them to plateau, and only 4% believe that they will fall. Again, none of this is guaranteed, but it gives us a good idea of what the market is actually thinking rather than just hearing the panic of the hypothetical outcomes that Brexit may have.
Something important to keep in mind when considering this is that the best option is to trust your judgement. If you’re looking to invest in a property that fits your specification and is in your financial means, you could be stung if you wait for prices to drop and another investor swoops in the meantime. Brexit is still going to take two to three years to finalise, and that is a potential three years that your investment could be paying back.
There has been a recent drop in house prices, which means that now is the time to invest as it is a buyer’s market. Buying or investing in property is long-term, and should not be put on hold for short-term drops such as the rumoured Brexit drop, as the prices will inevitably stabilise. There is also a gap in the market for investors that the panic about Brexit is causing; with other potential investors holding off it leaves the market open for those who are prepared to act now and gives you more opportunities to make the most of your investment.
Rental properties are still in high demand, and with Generation Rent still going strong, this is unlikely to change any time soon. This means that investing in buy-to-let properties is a safe investment and is relied upon by those needing to rent their home. According to a recently published market report by Savills, rents are expected to rise UK wide by an average of 15.4% between now and 2024.
Overall, waiting for the result of Brexit may mean that you lose out on the investment opportunity that is in front of you today. The chance of that opportunity being available in 2-3 years time is incredibly unlikely, and whilst prices could potentially drop you will have lost out on the last 2-3 years’ worth of net yield. There is also no promise that these prices will drop, so you could find out that you’ve lost that 2-3 years’ of net yield and gained absolutely nothing from the wait.
As long as you’re investing smartly, Brexit should not pose a big threat to you. Going with properties with a strong yield and a guaranteed return should settle any worries that you have about the possible drop in the property market.