People want today more than ever to be with their families, to have a safe place to shelter and isolate themselves, as well as a cool and pleasant place where they can work and lead a home and family life.
Who could have predicted that the ‘Brexit’ vote – unlikely as it was would give us one of the best opportunities to buy property in the UK in 30 years?
With the UK vote to become independent, British leaders must conscientiously renegotiate trade deals with more than 40 countries in just two to three short years. And with uncertainty still lurking, both the pound and the UK housing market have turned out of favor investments and Guaranteed rent schemes in Manchester opening now with a wide range of profits.
But some investors see this as a historic opportunity to buy UK property at bargain prices in Manchester. These are some of the best reasons why it may be a good time to buy physical pond property or invest in UKManchester property exposure funds.
1. The weaker pound means that UK homes and other property are 10% less expensive in dollar terms
The average UK home is priced at around £ 206,000, according to the UK’s leading real estate agency Nationwide, which had translated to about $ 297,250 just before Brexit. With the value of the pound falling to 30-year lows near $ 1.30, the average UK home costs around $ 267,000, meaning it would pay $ 30, 250 less than it would have in mid-June.
2. Manchester home values could decline for the first time in years, opening up an exceptional value opportunity
The housing shortage has pushed Manchester prices up nearly 40% since March 2009, according to Nationwide data, while London home prices have doubled. But with Brexit uncertainty and new sales taxes dampening demand, the agency expects Manchester property prices to decline to 2.5% in 2016 and drop 1% in 2017. Even better, they forecast that Central London home prices will drop 6% this year and will remain flat in 2017, giving you a rare opportunity to choose Britain’s best property at a discount.
3. British commercial real estate is also less expensive
Recent figures from data firm MSCI showed that Manchester commercial property values fell 3% (with London offices falling 3.8%) in July alone, the biggest drop since March 2009, largely due to part to Brexit uncertainty. Other real estate investors are seeing even bigger discounts, with offices selling 5% to 19% off their pre-Brexit prices.
3. Rental rates rise with continuing housing shortages and unaffordable housing
Now is also a good time to be a homeowner in the Manchester despite the recent reversal in property values. The latest survey by rental agency Your Move reveals that private monthly rental prices in England and Wales averaged £ 846 in July, reflecting an increase of 5.2% in just one year. In the south east of England, rental rates were up 14.9% compared to the previous year as Londoners fled the city’s high rental prices to look for cheaper.
5. Mortgage rates in the UK have dropped to record lows
Here’s the icing on the cake for those who need more buying power: The recent Bank of England interest rate cut has resulted in the lowest mortgage rates on record in the UK, with an average two-year fixed mortgage rate dropping to just 1.66% in August and the five-year fixed mortgage rate dropping to 2.42% (note: unlike US fixed 30-year mortgages, UK lenders are typically short-term fixed loans that may be renegotiated after the deadline).
The Bottom Line
Do you want to take advantage? You may consider pursuing funds with large exposure in the UK or working with an international payments specialist to help you physically purchase property abroad. Given the weakness of the pound, discounted property values and cheaper access to registered cash, it would be difficult to find a better opportunity to invest in property in such a desirable location as the UK.