Brexit is more complicated and convoluted than most people could have anticipated. All the press surrounding the thing is mostly negative and without a shred of optimism, so the idea that real estate investors could find a silver lining somewhere seems almost impossible. But what if it was possible?
Well, real estate investors are one of the few parties in the UK who can ‘make the best’ of the chaos at hand. With some savvy intellect and outstanding courage, it’s conceivable that they could make things easier for both themselves and their customers. Still, the question remains; how can they do this?
Consequently, here’s how real estate investors can make the best of Brexit!
Price Drop, Rent Upsurge
Sometimes, bad news for the seller is often good news for the buyer or letter. It’s undeniable that property prices have dropped (and will likely continue to fall) because of Brexit. This means that homes are now more affordable than they’ve been in quite some time and will be for the foreseeable future. Of course, price drops can indeed put off buyers too, but they can yield opportunities under the right circumstances.
As some of those from EU countries begin to leave the UK, this leaves vacated properties to sate a near unquenchable thirst in rent demands. Therefore, there’s both supply and demand on the table; acquire the properties and get them ready for those looking to rent. It’s important therefore to ensure that if you’re a landlord you have the right landlord insurance.
Research and Analyse
How would you know there’s an upsurge in rent demands? Well, you’d do this by researching, observing and analysing the market trends. Even stats around local salary earnings and job availability can be telling too, because this information will inform you on whether people can afford your rent rates and how likely you are to attract tenants. Obviously, with Brexit, this data is even more sensitive and valuable.
How much are people earning on average? What should your rent be set at? Is the property in a busy area, or is it out in the middle of nowhere? Take these considerations seriously, because Brexit or no Brexit, the answers to these questions will always be important. In fact, Brexit will likely attract more people to busier and more built up areas, so as a real estate investor, you should focus your attention here.
Budget Accordingly
Investing in real estate is no easy or carefree task, and that goes double with the Brexit turmoil too. You shouldn’t part with a penny in this arena until your own financial situation is secure and under control. Of course, investing in real estate is always going to be a risky endeavour; however, it’s plain stupid not to minimise these risks wherever you can.
Ensure that you budget for everything; managing the property, repairs, decorating and furnishing the place, using estate agent services, etc. If you can’t adequately fund these aspects of real estate investment, then perhaps consider biding time until you can afford to. Still, if Brexit is making it difficult for you, you can always take out loans to try and get ahead of the game here. It’s possible competition will be low with Brexit uncertainty, leaving you plenty of breathing room to take out loans and invest in a wide selection of property.