BREXIT BOREDOM: New Hope for Euro Luxury Home Buyers?
Amid the uncertainty of Brexit, one thing is becoming clear; enthusiasm for European luxury homes is higher than ever. Despite the confusion around what a final agreement will look like, reports show property buyers are continuing to invest in new homes abroad.
This week, the average asking price of a home jumped by nearly £3,500 – the biggest month-on-month increase in over a year. Estate agents say that home buyers and sellers have become bored of Brexit. Following the EU Referendum results, many buyers were concerned about the impact on their purchases in Europe. But more than a year later, we’ve now seen the impact is not what people expected.
As I wrote in November last year, it was totally understandable that in the build-up to the Referendum in 2016, many buyers were nervous. They were hesitant to commit to purchases given the absence of any clear precedents or signs about the possible direction of political decisions affecting the property market.
However, once a decision had been made, an ever-increasing number of buyers felt more confident about proceeding with purchases. Many have had the mindset that they want to secure a piece of Europe for their future, regardless of whether the UK remains part of it or not, while others just wanted to get on with their lives, we are not getting any younger.
The ‘Live for the Moment’ Effect
Last year I reported that a client called me to say he was putting his purchase on hold until we knew what was going to happen between the UK and Europe. A year later, this client called me out of the blue. “By the time Brexit has been sorted out,” he said, “I’ll be too old to appreciate my holiday home! I’m not going to let the government govern my own life or lifestyle. I’m not getting any younger and my family deserve this.”
He went on to complete his purchase.
As property website Rightmove announced this week, the average asking price on houses continues to rise. A desire to buy no matter what the political or economic impact of Brexit is an increasingly common mindset among buyers of all budgets, backgrounds and geographic target markets.
There are some buyers who want to invest in Europe now, with the option of moving out of the UK in the future. It’s a good time to buy while the UK is still in the EU. We don’t believe Brexit will make the process of buying abroad any harder. However, it indicates that it may be the ideal time to secure a luxury villa for sale in France, Italy, Spain or Portugal; and then enjoy the benefits further down the line.
Will It Be Harder To Buy After Brexit?
Some people will tell you it will be harder to buy after Brexit. However, you only have to look at house purchases made outside the EU to know there can be a thriving supply of properties whatever kind of Brexit we get. Barbados is most definitely not in the EU but it attracts a regular stream of prospective buyers from all over the world.
Adopting a Measured Approach
The golden rule is to approach your house purchase as you would any other business opportunity; put Brexit out of your mind and do what feels right for you and your family. If owning a luxury villa is a dream of yours, then go for it; it’s a decision you’re unlikely to regret, even if there is a lot of political wrangling in the back ground.
As mentioned in several other of my blogs, review all your options before making a big investment decision. It’s you and your family’s lifestyle, needs, and future requirements that are most important to a successful luxury overseas property investment. Sure, an EU country may well be the place for you, but alternatively, there are a virtually limitless numbers of opportunities.
How has Brexit affected your buying ambitions, goals or actions? We’d love to hear your thoughts and opinions. Do you feel concerned about the future or do you feel the EU luxury property market will continue to be strong?
Managing Director and Founder