If you have been following the news, you will know that there is a very real concern over just how a no-deal Brexit could impact the economy in the UK. Much of that concern involves housing. With so many migrant workers expected to return home and not enough jobs to go around, even after EU citizens return to their respective homelands, the number of people unable to afford adequate housing is expected to explode. This might not seem like the ideal time to invest in property, but it is exactly because of the current economic climate that it is a perfect time to do just that. Here are three key reasons why.
1. The Age-Old Supply and Demand Equation
At the moment, there is a bigger demand for housing than there are properties to sell or let. This makes it a seller’s market. If the no-deal Brexit has the economic ramifications many fear all those new homes currently under construction may sit there vacant for some time. This will drive prices down and when they do reach a bottoming out, investors stand to make a small fortune because the government will find ways to boost employment.
They can’t, after all, support all those people returning home through social programmes! When the situation rights itself again, property values will begin to rise and that means investors who got in when pricing was low will realise a sizeable ROI. This is based on the age-old supply and demand equation that has withstood the test of time. It’s how property investment, or any other kind of investment for that matter, works. Buy low, sell or rent high.
2. Pensions Are in Question
From the very beginning, pensions have been in question as to what impact leaving the EU would mean in both the short and long term. Many people are pulling out of their pensions and sinking their money into investment property. No one yet knows what impact Brexit will have on pensions, but one adviser says that pension boards and trustees should remain vigilant as the impact of leaving unfolds.
If you are one of the tens of thousands seeking sound long-term property investment UK strategies, the best course of action at this time is to become better informed. Look at what kinds of investment schemes are out there and how to go about investing in the one that best meets your retirement goals. Sites like Sourced offer free property investment training courses so that you can understand the differences between long and short-term returns, as well as the various ways in which to invest. Utilise these online tools so that you can make informed decisions and leave the guesswork to the amateurs.
3. Investing as Little as a Few Hundred Pounds
At the moment, you will find investment opportunities where you can invest as little as a few hundred pounds. Some property investment services offer the option to begin investing with as little as £250. Before taking your money out of pensions and other investment schemes, start with a small amount while learning the ropes.
Time and again you come back to the supply and demand formula that clearly shows a lack of buyers/tenants today will blossom as returning workers find employment. Many financial advisers believe that the time to get in on property investment is when the economy is in question. It is expected that prices will begin dropping as the economy flounders, so investing a little now will have you ready to invest larger amounts when property prices bottom out. That would be the time to close out your pension and get onboard a long-term property investment scheme.
The Long and the Short of It: A Brief Summary
Many seasoned property investors believe that property is one of the safest investments there are. People will always need homes, businesses will always need commercial properties, and there is only so much to go around. They admit that short-term drops in value are always possible, but over a longer period of time, prices will indeed rise well beyond what they are today.
Whether you believe that Brexit will have a major impact on the economy or not, it’s rarely a mistake to invest in property because the prices can only go up over time. Certainly, structures can be devalued over time, but the ground those buildings are situated on will continue to rise in value. So, if you are looking for a reason to invest in property now – or at any other time for that matter – it would be that property is one of the investment vehicles that will offer a better than average long-term ROI.
The only thing you really need to decide upon is how to invest that money. Do you want to be a single investor in single properties or do you want to join a fund? These are things you can learn, but if you are serious about investing, all the signs point to now as the time to begin learning. The future is always uncertain, but Brexit adds fuel to the fire. If you are looking for a safe long-term investment strategy, property is probably your safest bet.
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