Mark Talks BREXIT - What it Means For Property Investors & Their Investments?

Welcome to another episode of the Mark My Words Podcast. In today’s episode, Mark discusses BREXIT and lays out what’s going to happen post BREXIT and what it means for property investors and their investments? Get Marks inside-track on our economic situation and why now, is still a good time to be investing in property. The main consequence of Brexit is lots of changes surrounding trade and our relationship with the European Union, changes to rules around lending and the general legislative framework that we follow in the UK. Brexit is the biggest project the government has undertaken since the second world war and as a result, lots of the UK market has gone ‘soft’. The brake has been applied to the market and once we get some level of certainty from the government, from the EU and from our Brexit deal we will start to see an increased economic growth, in business and in property. Mark suspects at the end of the Brexit period the economy will see a big release of capital and movement with our economy, our property prices and our rental values. KEY TAKEAWAYS Generally speaking, residential property investors are better insulated against legislative changes than commercial investment and standard retail businesses. Why? Simply because people will always need somewhere to live. There are 70 million people in the UK and they all need a home. Brexit also doesn’t necessarily mean all UK migrants will ‘go home’ there will still be a form of immigration in place to fill jobs and to keep the economy growing. There will always be a demand for new housing in the UK, we are about 100,000 homes short and currently cannot keep up with demand for housing. Because of the supply and demand imbalance you’ll most likely see property prices rise and rents increase. Brexit doesn’t mean ‘stop investing in property’ lots of property markets around the UK have gone ‘soft’ and dropped around 20-25% since Brexit started. The property market will continue to be ‘soft’ until we get some certainty. Lending for both development finance, long-term finance and commercial finance is now easier than ever before, certainly easier than in 2008-2010. Mark recently went to Funding Circle for a loan and was offered £240,000 unsecured at 2.7% per anum. Banks and financial institutions are lending at much better rates than in the last ten years. If you look across the three commercial sectors, retail has become a lot more negative, industrial is very positive due to trade counters and smaller businesses and the office market is also clearly very strong. BEST MOMENTS “We are short of housing demand by about 100,000 homes each year” “RICS are saying rents will go up by 10-15% in the next year to 18 months.” “Lots of investors retract from buying property when there is a lot of negativity in the media and uncertainty around our economic situation, what you need to do is look at the opportunity here” “Our European cousins economy is probably growing about 1% more each year because they don’t have the level of uncertainty the UK has currently” “The Retail market is in a slow-motion crash due to online growth and online retailers” “It is in the European Unions interest to do a deal!” ABOUT THE HOST Mark Homer is an entrepreneur investor.  He has worked with investment since he was 15 years old using the laws of wealth! He is a spreadsheet analyst with an impressive following from major publications including BBC Radio, The Wall Street Journal, The Independent, as well as co-authoring the UK’s best selling property books.  Mark has always looked for the best investment vehicle, and at the end of 2007 with Rob Moore the co-founder of Progressive Property his joint portfolio produced more profit than any of the other investments he’d tried in the last ten years, combined. CONTACT THE HOST Email: [email protected] LinkedIn: https://www.linkedin.com/in/markhomer1 Facebook: https://www.facebook.com/markprogressive Twitter: https://twitter.com/markprogressive‘Brought to you by Progressive Media’: https://progressivemedia.uk/