Pros And Cons of Property Investment in the Age of Brexit
While housing prices may dip further, depending on how Brexit pans out, most experts believe that the market will eventually rebound.
When it comes to property investment in the United Kingdom, Simon Nosworthy of Osbornes Law Firm believes that the housing market has already pre-adjusted for Brexit, according to The Sun. Investors who decide to pick up properties before, during or after Brexit may be grabbing bargains that they can sell for big profits when the market recovers.
While property investment in the UK is currently subject to a lot of uncertainty and has its pros and cons, there will be investors who read the property investment landscape perfectly and then make a mint.
Look at the bright side
Buying property has many advantages (capital growth over time and/or rental income), provided quality properties in good locations are chosen. The UK real estate market shifts, but savvy investors know when to get into the market and when to get out. Since prices have dipped a bit due to Brexit uncertainty, there are valuable properties available which are cheaper than they normally would be. These properties may increase in value once Brexit issues are finally resolved. Whether you’re interested in buying a home or flat and renting it out to make cash, or investing in commercial real estate, the silver lining in Brexit uncertainty is that deals are out there. If you’re interested in buying, know the risks and choose a property or properties with the utmost care.
Know the risks and choose carefully
To boost the odds of a successful property investment, you should examine prospective properties with a fine-tooth comb. Properties should be in locations that are in demand or growing more popular. Properties should be in good condition, and tests will be needed, as visually inspecting a property on your own isn’t enough. It’s wise to pay for surface and air inspections that determine whether mold is present. You should also pay inspectors to determine whether homes or commercial properties have other issues, such as structural defects or water damage. Mold remediation is possible and should not break the bank, but issues with structural integrity and water damage may cost a lot to fix and cut into profits when you resell.
Prepare to be patient
Short-term flips are always an option, but current real estate market conditions point to playing the long-term property investment game. Buy undervalued properties on the cheap and hang onto them, so you can make good money when you sell them once the Brexit dust settles. Rent a property while the UK adjusts to a new reality, and prepare for the future: when the market rebounds and you’ll be able to sell with great results.
The pros of UK property investment in the age of Brexit, such as lower real estate prices and the possibility of big profits in the future, are balanced by the uncertainty and risk that Brexit brings. Weigh the pros and cons before making a play in the real estate market.