The Impact of Brexit on Foreign Property Markets
While the majority of discussions over how Brexit is likely to affect Brits have been based around employment and the cost of living, there’s also been some concern over how it will affect those looking to invest in foreign property.
Many Brits either already own a property in Europe, or they're considering buying one in the not too distant future. So, how exactly will Brexit affect foreign property prices?
The cost of European property has increased
Compared to a couple of years ago, the cost of European properties has increased quite dramatically. So, it's more expensive to own say a villa in Spain now than it was before the Brexit vote.
One reason why it is more expensive to buy foreign property now, is because of the nosedive the Great British Pound took when Brexit was first announced. Due to a lot of uncertainty over how Brexit will affect the economy in the UK, the sterling isn't as strong as it used to be. This means, if you're looking to invest, you're going to need a much larger savings account than in previous years.
The potential legal difficulties involved
While the falling value of the GBP is likely to be a major issue for Brits looking to relocate or buy a second property abroad, it's not the only problem they'll face. Once the UK finally does exit the EU, it's highly likely that there will be numerous restrictions and requirements placed upon Brits who want to travel, and live, in European countries.
This doesn't mean Brits won't be able to invest in foreign property, but it does mean it will be significantly more difficult. So, expect to have to jump through a lot more hoops to obtain your dream European property!
It's not all bad news as selling European property works out more profitable
While the cost of buying a property abroad may be more expensive, the amount you get back from selling a European property works out much more lucrative. Those wishing to sell up and head back to the UK will benefit from significantly more profitable repatriating rates.
It's also possible for Brits to determine the best times to invest in foreign property by following the financial markets. The trading markets accurately reflect the economy and value of the GBP, enabling you to see when the right time to invest would be.
Overall, Brexit is already having a significant impact on foreign property markets. Those looking to invest in property abroad would be better doing so now, rather than waiting until the UK actually leaves the EU. If you do wait, the prices may soar further and the additional legal requirements needed to move to European countries will make it much more difficult for you to relocate or purchase a second home abroad.