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What of Britain’s housing market post EU referendum result?

Enable’s experienced IFA’s in Bishops Storford are here to try and help you make sense of the economic landscape so you can plan your finances. Some analysis are currently saying that while Brexit may not directly affect demand for property, there could be some complex knock-on effects for mortgage rates and the building industry, all of which could alter the long-term direction of travel for house prices.

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The younger generation may well be wondering if property is still worth the investment. It has long been the case that timing matters but the right timing is also notoriously difficult to predict- on top of timing the amount you borrow and the rates you pay on the debt is crucially important.

According to modelling by online investment firm True Potential a £100,000 property bought for cash in 1985 generated a return of £540,589 – or 441pc – by 2015. Even with interest paid at the prevailing Bank of England base rate – considerably more than many savings accounts offer – a investment of £100,000 would have grown to £265,000, or £487,754 if interest was reinvested, over the three decades.

But attitudes toward property appear to be changing, David Harrison of True Potential said “People are split on whether property has been a money-maker or a costly investment,” he said. “ Property is also a very illiquid asset (this is an asset which cannot be easily sold or exchanged) with high costs and it can take a long time to see returns.” In a survey of 2,000 adults, property was picked by half as the best investment they had made over the last 30 years. But property was also the most cited “worst ever financial decision”, with a third of respondents saying it had been their biggest mistake.  These results really do highlight just how important it is to make informed decisions when buying property.

Source: The Telegraph

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.

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