Should I sell or hold off my property post referendum?
Real estate has suddenly become a troublesome issue in the wake of Britain’s vote of quitting the European Union (EU). Since the beginning of 2016, house prices in London had started cooling off after a relentless spike in property value and Brexit further helped stall the real estate market. Currently, developers are luring potential investors with a number of offers such as free furniture or valet parking space to close the deals.
As per a rough estimate, the property prices have come off around 7.5 percent to 10 percent in the capital and are expected to fall by more yet. It is learnt that the Bank of England resisted to cut down its interest rate and also revised its outlook for house prices. Experts have predicted that London properties value would remain flat for the upcoming three to five years. Brexit vote has led to creating a coggle in the London property market but the bubble will not burst as the house prices are expected to rise again after a few years.
In short term, we can see fluctuation in the market but in the long term, we can expect prices to go up. This is what experts speculate but ultimately, the market will remain unpredictable. No one can fully comprehend the trends and assure what the outcome will be. Remember, if the market starts growing again, the same property assets will see the spike in prices, which are weaker at the moment. But here a question arises whether to sell or hold off your London property post-referendum. In this situation, there are three options for the people, who have already bought property in London.
If you have invested in property, it surely means that you must have considered it a valuable asset or you may have your own reasons such as, you liked the property, or the price was reasonable. However, the uncertainty created by the Brexit vote should not urge you to take a dramatic U-turn. Just think about the long, tiring process, you took before to enter in the market – the stamp duty, legal fees and all other expenses. And remember, you will have to bear it all to re-enter the market. The gains are definitely lower at the time but if you have a buy-to-let property, you will eventually achieve a decent yield – regardless of the market fluctuation.
Getting Mortgage is Tough
If you think of selling your property right now due to your own reasons and most probably, you may also have plans to buy a property again. As you know the banks are resisting to cut down their interest rate and may revise their outlook for the house prices. Moreover, the rules would also get stringent so, with time, buyers will find it more difficult to get accepted for a mortgage deal and they will have to struggle again to get the mortgage for the specific deal.
Selling the Property
The Brexit vote has sent shock waves across the world and it must have caused you to re-evaluate the reasons you invested in the property yourself – selling is, definitely, the first option. You must have bought the property at a time when demand was far stronger than the supply and lenders were generous with credit.
At the same time, there will be several potential buyers who must be hoping to the house price falls to that level due to Brexit, where they can afford to buy property in the UK.
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