The United Kingdom is scheduled to exit the European Union on 29th March 2019. The is known as ‘Brexit’. Brexit has caused great confusion among new homebuyers, many of whom frequently question whether they should buy a property before Brexit.
Three question quiz: Should you buy a property before Brexit?
Everyone has their own predictions as to what will happen to the UK housing market before and after Brexit. It’s obvious, political and economic uncertainty causes house prices to slow down. However, this does not mean you should stop investing in property.
Below are three questions you need to answer before determining whether or not you should buy a property before Brexit:
Can you legally stay in the UK after Brexit?
Are you, or will you be eligible for UK permanent residency? If so, you know you can always inspect your property, in person, when a serious problem arises.
Non-residents can also purchase property in the UK. However, if you cannot live in the UK permanently, will you be comfortable with the risks of investing in an overseas property? When serious problems with the property arise, you may have to fly back to the UK.
If you do want to invest in properties abroad, my advice is to hire the best property manager and accountant. Your property manager must act as your ears, eyes and hands. Whilst, your accountant must at an expert at claiming you the best tax benefits.
The stronger your property team is, the less problems you have will.
Do you want to buy and sell the property quickly?
There’s little doubt the UK property market will dip due to the uncertainties surrounding Brexit. If you are an investor who buys and sells property quickly, wait until after Brexit, when the policies are clearer, to make your purchase.
People will dispute this. They say that property prices are slowing down now so you’ll find a better bargain. This might be true. However, this also means, it’s likely, you’ll have to sell at a lower price because buyers are spending less.
Do you want to buy a property as a long-term investment?
History has shown that property prices do increase over the long-term, despite recessions and political issues. Investors who focus on the long-term do not stop investing because of Brexit, as inevitably, governments must go through changes.
Brexit presents a good time to find a property bargain, as many sellers are nervous. But to make money, you must keep this property for at least 10, 20 or 30 years. This gives times for the capital growth of your property to increase, so eventually, you can remortgage to buy more investment properties.
Please note, all opinions on this blog are based on my own experiences. If you want legal and financial advice, please consult with a professionally trained advisor.
So, would you buy a property before Brexit?
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