Why Now Is the Best Time to Invest in the UK and Australian Real Estate

Why Now Is the Best Time to Invest in the UK and Australian Real Estate

As Brexit looms over our heads, everyone is fearing a huge housing market crash. Is this a perfect time for investors to act? Or is the climate too risky? We’ll discuss that in this article.

If you’re wondering whether now is the right time to invest in real estate, you wouldn’t be wrong for feeling disoriented during these troublesome economic times. But if you were to take a tour of Peterborough – a developing community in London for commuters – you’ll find numerous comparable properties within a couple of square kilometres. In this one small city, you’ll find just as many markets as the entire country.

With Britain’s economy facing uncertain times, price growth slowing to a near crawl in former hotspots, and transaction levels studdering, the once healthy housing market has long since receded.

According to Agent Select, Australia’s buy-to-let investors are looking to be hemmed later this year and in 2019 by sets of new regulations and taxes, while owner-occupiers are looking at making high-risk property moves as interest rates begin to increase and mortgage affordability rules remain stringent.

Additionally, you can check out The Property Buying Company as they buy any house in any condition for cash and they’ll do it fast.

Either way, how would anyone with a sane mind think it’s a great time to invest in real estate? Well, let’s have a look.

Taking Advantage of a Fear-Driven Market

There is an adage from Wall Street that says the markets are driven by two emotions: greed and fear. This statement is an oversimplified one but holds a lot of truth. Giving in to such intense, irrational feelings can affect investors’ choices in some profound and detrimental ways. Investing is something that must be done without emotion and with logic.

In the world of investment, we often hear about the juxtaposition between growth investing and value investing. While most of us understand these strategies and their importance, it’s equally essential to comprehend the influence of greed and fear on all markets, especially the real estate sector.

As for the UK, so much focus is being made over Brexit – it’s all we hear about on the television news and all we read about on the front pages of magazines and newspapers. And even though the UK is suffering from more problems than Brexit alone, it has been the root cause behind investors’ apprehension.

First Came Greed, Then Came Fear

In the golden years, a time when both the UK and Australia were the epidemy of growth and prosperity, central banks drilled in everyone’s head that greed was terrible and how detrimental extreme moral hazard, excessive risk-taking, and “irrational exuberance” were. They also taught the generations of old that slow and steady wins the race.

Australia was even able to avoid a depression while the UK and the United States were suffering from their own Great Depressions, thanks to a golden era in policymakers.

Those were times when our grandfathers and in some cases parents purchased a new car with cash. Today, Gordon Gekko has returned with a vengeance, and all of the sudden “greed is good.” Fear is something to shun because money never sleeps and every moment is presented with a way to make a quick profit.

Now that our actions, namely living lifestyles way beyond our means, we are facing the music; a tune of despair and negativity. So phase two has been set into motion as people reverse direction and stop investing altogether. And though investors should always be conservative, they, too, should know when to take calculated risks. This is one of those times.

There hasn’t been one economic downturn that lasted anyone’s entire lifetime, this we can all attest to. Market fluctuations are natural events in any free economic society, sort of like the evolutionary natural selection. And once you understand how past economic recessions and depressions have helped modern society, you’ll begin to realize they’re not all that bad.

Without economic downturns, there would be very little growth and barely any development, because it’s through these situations that we learn to do things better and smarter, new technologies are invented, and new systems developed. And that is why this is the best time to invest in UK and Australian real estate.