Is now the perfect time to invest in the UK?

In a surprise move, the UK has decided to leave the European Union. So is now a good time to invest in the UK or not – and is now a time of opportunity for international investors?

 

The UK has a long standing reputation as a secure place to invest, with strong and trustworthy legal and political systems, and far less economic volatility than many other countries. This remains true. However, with recent events causing a sharp decline in the value of the pound, Indian investors have a window of opportunity to buy UK assets at a significant discount to previous levels.

 

Exchange rate shift since the EU referendum (correct as of 22.8.16)

INR vs GBP

+14%

USD vs GBP

+14%

 

Indian nationals now have a considerable price advantage – so what are the main options for investing into UK assets?

 

 

The Stock Market

The London stock exchange has so far proven resilient since the referendum with both the flagship FTSE 100 index and broader FTSE all share index at close to record levels. However, markets prefer stability and there is nothing certain about the future, for either Great Britain or the partners being left behind. While we can expect plenty of volatility, and possibly even upside in the medium-term, it is likely to be some time before equity markets find their new equilibrium.

Gold

Gold is a real and tangible asset, and is traditionally seen as a safe haven in times of uncertainty, or crisis. This has been evident following Brexit, and even more so following the Global Financial Crisis. However, if you take a look at Gold’s performance over the long term, it has proven volatile, and significantly under-performs other asset classes:

 

 

Residential Property

History shows that UK residential property is one of the lowest risk, and highest reward investments you can make, with far lower volatility, and superior returns compared to other major asset classes. In fact, between 1973 and today, the UK residential market has seen no five-year period with negative total returns, after accounting for both rental income and capital gains.

Property is a real asset of bricks and mortar, and the underlying value of residential property as a home helps support prices even during periods of economic uncertainty and weakened demand from investors. During times of crisis or uncertainty, homeowners tend to sit on their properties, which removes stock from the market and pushes prices back up – and all the while, these properties are still earning rental income for investors. Prices are also supported by the fact that demand for housing far outstrips supply in Britain, and will continue to do so for the long-term.

 

Some conclusions

With an additional 14% value to any investments purchased with the new exchange rate. Indian nationals looking for a secure and stable asset to compliment domestic investments may wish to consider investing in UK residential property, as the lowest risk and highest reward investment of the major asset classes. The problem has been that residential property isn’t easy to invest in – and requires huge upfront costs. Property Partner has changed this.

Property Partner makes it easy for anyone to invest in property, by allowing investors to own a fraction of a property, and earn rental income on their share. Investors can invest as much as they like into as many properties as they like, starting from just £50, and up to 20% of each property’s value. Investors can choose to list for sale at any time on the marketplace at a price of their choice, otherwise, each property has a 5-yearly exit mechanism, guaranteeing sale at current market value for anyone who wants to exit.

The letting and management of the properties is all taken care of, and with extremely low fees by industry standards. Moreover, every property has been hand-picked by one of the UK’s top property experts. Click below to find out more.