The fall of the pound providing a perfect opportunity for overseas investors.
Last week the British public voted to leave the European Union; the immediate aftermath of which saw the resignation of British Prime Minister David Cameron and the value of the British pound collapse to a low not seen in over 3 decades. While buyers dealing in sterling seem to be adopting a “wait and see” approach to property investment, ambitious foreign investors have a perfect opportunity to purchase property in the UK while the exchange rate is at its lowest, and obtain some incredible bargains.
Knight Frank suggest that the drop in value of the pound significantly increases the buying power of foreign investors, with a rejuvenated enthusiasm for UK property being particularly prevalent amongst buyers from China, Hong Kong and Singapore — where wealthy investors have a long history of buying UK investment property; attracted by the country’s resilient economy and tremendous potential for capital appreciation.
With the pound also down against the US Dollar, Euro and UAE Dirham, investors from all over the world now have a tremendous opportunity to capitalise on their strong exchange rates and achieve substantial discounts on their UK property purchase.
For example, investors dealing in Euros could save over €7,000 on our Newton Manor Care Home investment opportunity today, compared with if they had purchased on Thursday; while those dealing in US Dollars stand to save nearly $11,000. A full breakdown of the savings for investors dealing in US Dollars, Euros and UAE Dirham is shown in the table below.
While the fall of the pound looks set to provide overseas investors with some incredible bargains, ‘Leave’ campaigners suggest that this will be short-lived and the value of Sterling will soon recover. The Brexit camp has argued that the business world will quickly adapt to Britain’s new economic structure and, after an initial ‘Brexit panic’, things will ultimately settle down and return largely to how they were before the referendum. Many also believe that the UK’s improved ability to work with countries outside of the EU will provide a boost to the country’s economy and the value of the pound in the long-term.
This means that overseas investors taking advantage of the pound's current decline could stand to make significant capital gains once the market recovers. With this in mind now could be the perfect time for overseas investors to buy property in the UK and some make incredible long-term financial returns.
If you're considering an investment in UK property, contact a member of our team today on +44 (0)1202 765011 or email [email protected] for more information.