With the fall in the value of the pound, low-interest rates, panic buying and reports of job losses, 2019 is becoming crucial for the UK – all thanks to the looming Brexit, and its uncertainties.
The property sector isn’t left out. According to the Royal Institution of Chartered Surveyors (RICS), prices of houses have taken a dip and sales are at an all-time low, the worst in two decades. There are simply few buyers and sellers willing to take the risk. Also, the ONS reported that residential property prices have fallen by about 1%, also due to Brexit.
Although the Brexit uncertainty has left many people hesitant to make financial investments, the housing drag is a golden opportunity for investors and intending homeowners to buy.
One of the reasons why now is the right time to buy is that sellers are becoming more open to negotiations and are accepting lower offers. In research conducted by LonRes, sellers agreed to prices that were 13.1% lower than their initial asking price in the last three months of 2018. With the paucity of buyers, sellers now realise that to sell their properties, they need to offer discounts.
Families looking to buy their first home can get a good bargain with the cheap mortgages. This means that if property prices go back to normal, they could be paying mortgages lower than rents. Why pay rent when you can start paying less for your own home?
For investors looking to make a killing, the Brexit uncertainty presents the perfect opportunity. Adam Price, MD at Select Property Group said: “Over the next five years, the average compound growth of property prices is forecast at 14.2%, while rents are also expected to have increased 17.6% by 2021”. Thus, an investor who rents out an HMO or sells it as units can expect to make huge profits.
If you’ve found a property at a very good price, there’s no point waiting with everyone else. No one captured it better than Warren Buffet when he said that investors should be “fearful when others are greedy and greedy when others are fearful.”