What Is Brexit?
Brexit is short for Britain Exit, which refers to the proposed withdrawal of the United Kingdom from the European Union, more commonly referred to as the EU. Brexit is scheduled to occur on March 29, 2019. It is possible that Brexit could be postponed or that Brexit could be canceled by the UK unilaterally, especially if a second referendum is scheduled before this date.
Current Effects on U.S. Real Estate Markets
The commercial and residential real estate industries are already showing signs of instability because of uncertainties about the potential economic effects of Brexit. UK investors are a significant power in the global marketplace.
The Potential for Increased Investment
The chief economist for the National Association of Realtors (NAR), Lawrence Yun, believes that a loss of confidence in the UK economy could increase demand for U.S. properties, especially those already in demand. This could drive property prices upward for Bay Area real estate properties.
Uncertain Effects on Global Investments from the UK
- Investors from the UK could look to the United States for favorable investment conditions and reduced dependency on the EU, or
- These same investors may tighten their belts and prepare to ride out the predicted unfavorable economic conditions in the UK after Brexit.
Since no deal has been reached with the EU on the precise terms of Brexit, it is difficult to identify the way in which UK investors will react when the transition occurs. It is also possible that the UK will find a way to move forward without exiting the EU. If this happens, it could conceivably be back to business as usual for Bay Area real estate investors.
Regardless of the effects of Brexit, finding the right financing will still be critical to your continuing success. Exploring the options available from alternative lenders, like ReProp Financial
p can help you make the most practical and profitable decisions for your real estate investment portfolio.