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Brexit Could Raise Real Estate Prices In North America
Hurry! Quick! Run! Get your real estate! There are deals!
Well, maybe.
According to the recent Brexit it’s forecasted on many news channels and blogs that North American real estate prices could increase over the coming years as a result of the Brexit!
Well, they forecasted that London offices could see a decline of 20% over the next couple of years and I am assuming that it is all relative - that money will flow internationally.
But what else is driving the flow to increase prices from the Brexit?
Because of the market “turmoil” it is likely that US interest rates will stay lower for longer making US real estate more profitable as mentioned here. Investors will benefit from a larger spread from mortgage payments and rent creating cashflow - as well as REITs that are investing in these properties in the US.
By appearing or being more stable than the London real estate market, North American real estate could seem more attractive - relatively.
I said in a previous blog post that foreign Chinese investors like US real estate because they see them as stable investment vehicles - well real estate.
This article says that the US will be considered a safe haven. And that the bigger markets like New York, Miami, Los Angeles, and San Francisco will likely be bought first before buying or looking towards smaller markets.
The Brexit could have further and other negative consequences for the global economy in the long run.
What do you think is going to happen to real estate prices globally as a result of the Brexit?
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