Whether you think the decision for the United Kingdom to exit out of the European Union (EU) is dreadful, shrewd or simply crazy. The facts remain that we still don’t know exactly what will happen as the UK process their departure from the EU. I believe that is the key to why so many Brits voted to remain; people fear uncertainty and there is no shortfall of uncertainty in the Brexit situation.
The media has had a frenzy ever since the vote was announced. Unbelievably biased titles have been seen provoking all sorts of discussions and arguments. I can only imagine my local pub’s discussions back home! It’s understandable that people will react in different ways, because the decision and the eventual outcomes will affect people in different ways.
One thing is for sure. The pound has dropped and however you look at it, this is great news for foreign investors. In the context of our business of selling UK property to overseas investors, it can be seen that there is an almighty discount on all of our stock.
For our expatriate clients who are paid in USD, they would have bought a 1 bedroom apartment in Manchester one year ago for the equivalent of 194,544USD however at today’s rate that would be 159,804USD.
For our Indonesian clients who deal with IDR looking at the same apartment. One year ago it would have cost Rp2.38 billion whereas today the price would be Rp2.10 billion.
These enormous discounts are surging sales and interest in our UK property projects.
Of course, these discount will only be worthwhile if the pound does come back. Here are some articles showing enormous confidence in the UK market:
GSK to invest £275m in UK as sales grow for new drug
Manufacturers say pound’s post-Brexit tumble has boosted exports
US fund houses snap up Brexit bargains
Post-Brexit weak pound to benefit JLR in long run: Tata Motors