Brexit Referendum brings an opportunity for international investors

The result of the European referendum has been called and it has been confirmed that the UK will be exiting the EU.

The fall in the value of pound presents a significant opportunity to overseas property purchasers, including Indian investors.

The buying opportunities will be ripe for Indian investors as they will benefit from currency gains as the pound strengthens over time and will create bargain opportunities for foreign property investors over the next three months in some of the most expensive areas of London such as Fulham, West Putney and Clapham, according to a housing report.

However, in context of the economy and the housing market, a “Brexit” does not change UK’s fundamentals. They are traditionally underpinned by the following, all of which are beneficial to investors:

  • A significant lack of supply in the housing market, which must be addressed. It makes little sense that UK buyers will not want to own a home and/or a buy-to-let investment in the country which they live in because it is no longer a member of the EU.
  • The UK is the fifth largest economy globally. This puts it in a strong position when negotiating trade deals with both EU countries and elsewhere after a Brexit.
  • Value of Sterling-International - buyers have the added advantage of purchasing in a safe haven market at a time when they can make considerable gains through a weakening currency.
  • For business people in India, the opportunity to do business on a level playing field, without EU tariffs and trade barriers, makes London a great place to invest again - particularly for property.

Eventually based on the investors aversion to risk, this could either represent a smart buying opportunity, wherein savvy buyers could make quick money on market uncertainties or for the more prudent, it would be a period of wait and watch before they decided to invest.

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