One of the concerns for those that have either already invested in property abroad or for those who were looking to invest in foreign property is: What does Brexit mean for property investments abroad, especially popular destinations such as Spain?
The reality is that a) there will be changes, but b) that any big changes are bound to take some time to materialize.
Before you let the panic set in, remember that Britons are very valuable to the tourist and property markets in places like Spain. According to this Kyero article, ‘’They [Britons] make up 21% of foreign house sales [in Spain] and around 4% of the total national market’’ – which means that chances are good that Spain will do everything in their power to keep those numbers up, and there will be negotiations setup that are bound to ensure that there are similar arrangements to the ones that are enjoyed currently for investors and tourists, to pretty much stay in place once Brexit is finalised.
So what does that mean for right now?
British property owners will enjoy the same rights as they have had in the past and will do so for a few years until Brexit has officially been finalised. At the rate it’s going, with many Britons suddenly regretting their leave votes, and the government unsure of how to proceed, it may be quite a while (possibly longer than the 2-year ‘divorce’ period) before the UK is actually out of the EU. And while the pound having dropped will naturally affect prices, keep in mind that despite its 31-year low, it’s shown a bit of progress in the last few days, already having stabilised somewhat.
Ultimately, property is still seen as a great investment, and it’s the way many millionaires have made their money. And while, in the future, visa regulations may be introduced for residents of the UK, it won’t prohibit people from travelling, because most of the world – people from the US and Russia as examples – still travel widely and own property abroad despite any visa regulations.
Ultimately, only time will tell what the real repercussions of Brexit will be. But for now, take a deep breath, don’t let the chaos affect you, and think of what the Kyero article puts quite succinctly: “The real impact is likely to be slow, entirely predictable and easy to manage.” This sentiment is echoed in various publications – that these changes are not bound to happen overnight – and that the likelihood of the changes being drastic, at this stage, are fairly small.
If you are still firm in your belief that a property is a solid investment then get in touch with us. Our highly-skilled team is more than happy to answer any questions that you may have and advise you on what will be the best options for you, ensuring that all your needs are fulfilled.
