Should American homeowners fear Brexit's impact?
Posted on Tuesday, June 28, 2016 at 1:31:25 PM
In one of the more shocking moves of the past decade, the United Kingdom voted in favor of a referendum to leave the European Union this June, which is being referred to as the "Brexit." The economic impact of this event was almost instant both in the U.K. and in the United States, with the Pound dropping to a 30-year low over night and the American stock market falling at the fastest rate in months the day after the Brexit vote.
American homeowners and those who are looking to finance and purchase a new house will need to keep several matters in mind to ensure that the Brexit does not translate to a major financial risk for themselves. In certain markets, some analysts are already beginning to put in their two cents regarding the residential real estate landscape in the wake of Brexit, including New York.
Investments to rise?
Observer recently reported that many analysts are taking an unexpected angle on real estate forecasts in New York City following the Brexit, arguing that the market is likely to be positively impacted by the event. Interestingly, this would not be only seen in New York, but rather the residential real estate market at large across the nation. According to the news provider, experts cite the fact that real estate is among the safest investments around, especially during global economic turbulence, meaning that many individuals are likely to purchase.
At the same time, prospective home buyers will need to remember that, should this play out, values will rise and the market will become more of a seller's territory. This could impact the bottom line on financing programs. However, this also indicates that right now might be the best time to purchase a new property. Observer added that interest rates are likely to remain at historic lows thanks to Brexit.
Getting the right loan
Regardless of where buyers might be looking to purchase a home or which purposes they might have for doing so, the only way to maximize the return on investment is to go about the financing process properly. By working with local, community banks to identify the financing program of choice and finalize the application, purchasers can get a more specialized and personal level of support from their financial institutions compared to larger enterprise banks.