Brexit has been the main topic of many discussions both in the UK and around the world. While it is still unclear just how much of an impact the Brexit referendum will have on the UK economy, we do know that the uncertainty is causing many investors to become overly cautious. This is especially true in the property investment industry as more and more investors are reducing their holdings and avoiding adding any new properties to their portfolios.
So, how should you invest in property after Brexit? Are the overly cautious investors right? Should we see what the Brexit affect will be on the investment property market, or should take advantage of the investment opportunities that Brexit has created? Let’s take a closer look:
What The Cautious Investor Believes
There are many who believe that ‘Brexit will be a threat to the property and construction industry and UK businesses.’ This idea comes from the fact that a very large portion of development in the UK is funded by overseas capital. Brexit could mean fewer overseas companies wanting to do business inside the UK. This could also result in the UK property sector receiving less inward investment and that could include the architecture and construction industries as well.
Another factor that could lead to an unstable property investment market is the availability of affordable labour. Brexit could mean that European Union-based funding will be withdrawn which will lead to labour shortages. These labour shortages could lead to higher home building costs and more cautious spending. The lack of spending could then result in higher property prices, rents and other costs as landlords and businesses try to remain profitable.
What We Believe
While the above version of post-Brexit property investment has a lot of ‘could’ and ‘what if’s’, we believe, as do many industry experts, that ‘Brexit means new opportunities for the property and construction industry and UK businesses.’ Why is this?
How To Invest After Brexit
With or without Brexit, there will always be opportunities to be had for those who are willing to work for them. Being open to these opportunities is the important part, especially when it comes to property investment. Regardless of Brexit, there will always be people who need to sell their homes for a variety of reasons including:
- Selling Off A Portfolio
If you can negotiate a good price in these circumstances, you stand to profit. Ideally, this can be done over and over as you build your property investment portfolio.
Brexit is also going to cause property prices to drop in the short term and trend higher over time. These short-term drops are the perfect opportunity for you to rise above the panic and profit in a post-Brexit market.
Contact Berkshire Corporate
To learn more about purchasing investment property in the UK, contact Berkshire Corporate today!
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