Property Investing Trends For 2019
If you are thinking about investing in property this year, you need to know what some of the real estate trends are. These trends can impact your investments in both positive and negatives ways. They can also affect what you invest in and how much work you need to do to maintain your investment.
Continued Flat Interest Rates
The first trend for the year that you need to know about relates to the interest rates. It is believed that flat interest rates are going to continue regardless of the outcome of Brexit. This can be a good and a bad thing for investors.
If you need to get a mortgage for your property investment, the flat interest rates can be good. However, other types of investing can find this to be a problem.
A Slowing Property Market
If you are interested in flipping homes, the slowing property market could be a problem. Over the last year, there has been a decrease in house prices in London. This is expected to reverberate outward into other areas across the country.
Related to this is the increased housebuilding that is taking place. These two trends are set to create a buyers’ market which can be bad for short-term investments. An increased supply of homes will result in lower returns on your investment.
However, if you are looking at a long-term investment, this could work in your favour. The slowing market can make it easier to add property to your portfolio. However, you will need to keep an eye on the rental market to ensure that it does not take a hit from the general slow in the market.
Brexit Is Creating Uncertainty
The uncertainty surrounding Brexit and the overall impact it will have on the economy is creating caution in the markets. All investors will need to focus on a long-term strategy to deal with the risks coming from Brexit.
Flipping houses might not be the best option at this point with buy to let properties being the focus for many investors. Commercial property also carries risks related to Brexit as business confidence in the country is not what it used to be. This could result in void periods which can negatively impact your cash flow.
Each year there are trends in the property market that you need to know about. For 2019, you need to consider the continuing flat interest rates and the slowing property market. You also need to take Brexit into account.