Five Things You Need To Know About Buying A Property Post-Brexit

So you’ve seen the headlines warning of a post-Brexit slump in the property market, but for investors and anyone looking to get on the property ladder for the first time this uncertainty can breed opportunity.

Here’s why:

1. Many first-time buyers are now pulling out of deals, worried about a dip in the housing market. This creates new opportunities for seasoned investors wanting to take advantage of low interest rates and get more for their money, as prices soften. The Bank of England has promised interest rates won’t rise for at least another year, making mortgages fairly affordable right now.

2 .You may be able to land a good discount on a property in these uncertain times, leaving you more cash to add value in the future, for instance by extending, or renovating the bathroom or kitchen. Once you have your formula as an investor: i.e. ‘discounted property + opportunity to add value’, you can make money in any market.

3. If you’re thinking of buying a property, once you’ve made your decision, act fast. You don’t want to agree a price in the wake of Brexit, then dawdle on the purchase for six months and find the market has dropped. Once you’ve made your decision and got your finance in place, progress quickly, but be prepared for every eventuality. No one wants to think about this, but if you’re buying with a partner, ask your solicitor for a ‘tenancy in common’ agreement before you buy, stipulating who owns what percentage of the property, in case you should ever split up.

4.If you’re considering downsizing and ending up with, for example, a £200,000 lump sum, now is of course not a good time to be putting your funds into a bank account as interest rates are so low, but if you’re using the money to buy more properties for investment or help your children on the property ladder, then you’re making the money work for you.

5. Be clear on both your short and long-term plans. No one really knows what’s going to happen next in the economy, not even the Government. You can only control your own decisions, but if house prices fall and you’re able to play the long game, you can postpone selling until the market rises again. I’ve been investing since 1998 and have seen house prices and interest rates rise and fall several times. If you want to make money, it’s crucial to buy at the right price and strike while the iron’s hot!

Bindar Dosanjh is an award-winning landlady, property investor, mentor
and lawyer. She started out as a secretary and now has a
multimillion-pound portfolio. www.bridgespropertymentoring.com