There is little doubt that, at this point in time, the UK faces challenges to its economic future. The main influencing factor is Brexit, the ripples from which economists believe we are only just beginning to feel. With the pound dropping in value and savers continuing to pay the price with historically low interest rates, it can feel like a volatile market to consider investing in.
Life, however, goes on, and financial life even more than that. Property remains one of the best areas to invest in; it’s solid, rather than being subject to the fluctuations of financial markets.
However, there’s no doubt it’s a tough time to invest, especially in the wake of recent news that house prices are beginning to stagnate.
So if you’re thinking of investing in property, what can you do to protect your money and your future against a difficult economic circumstance?
- Don’t Overstretch Yourself
In times such as these, you have to invest within your means. Don’t be tempted to buy property at the very top of your price range; be cautious and opt for something you are certain you’re going to be able to afford.
While low interest rates are causing harm to those who save in terms of finances and bank accounts, it’s good news if you’re looking to obtain a new mortgage. Rates are reaching all-time low levels, but don’t let this tempt you into overstretching yourself. Remember: the moment interest rates rise, so do your expenses. Keep it simple if you want to remain truly future proof.
- Take Advantage Of Changing Times
Five years ago, the idea that people would rent a house for a few days rather than stay in a hotel when going on holiday was… well… frankly unheard of. It’s now the norm, thanks to services like Airbnb. The rental market can suffer during times of economic uncertainty, but if you choose to use easy Airbnb management services, you can keep money coming in even when the long-term renters are staying away.
This gives you a chance to still draw an income from your investment, without having to hope you stumble upon the perfect renter who is always going to pay on time even when the economy is faltering.
- Up Your Security
No one really knows how bad the economic fallout of Brexit might be, but thinking in terms of the worst case scenario is a good way to protect yourself through the difficulty. If your investment property spends a long time empty, then there’s every chance it could be used for squatting. We already know a shocking number of people are being evicted from their homes, which means that your nice empty house might suddenly be a target for an easy night by those who have been left homeless.
It makes sense, then, to beef up security around your investment. CCTV systems are a good idea, and you should run a check on your alarm code too.
By following the above, your investment can remain a good deal even if the economy goes through a state of ill health – and you’ll be ready to bounce right back with it when it does.