Will history repeat itself?

Will history repeat itself?

New research by Savills shows that fortune favours the brave when it comes to investing. The research has revealed that it was investors that bought UK property in 2009, during the furore of the global financial crisis, that have profited the most when selling their property in 2018.

On average, just over £93K has been made by those investors who took the plunge in 2009 and sold their property in 2018. This is more than any other buyers have achieved in the last 14 years. This raises the question whether investors who buy UK property in 2019, during the Brexit mayhem, will experience the best returns in the long-term?

Cautious investors have been holding off on their UK property investments waiting until the Brexit dust has settled, but this could be a case of ‘playing it too safe.’ Bolder investors have been taking advantage of the lower pound since Brexit negotiations started, to snap-up property bargains with an eye on the potential for long-term gains.

The housing shortage in the UK is well documented and with the pound still suffering against other major currencies, the market conditions are right for those investors who can afford a buy and hold strategy for their property portfolio.

Commenting on the research, Lucian Cook, Residential Research Director at Savills, said: “Over the last 15 years it really has made a difference as to when and where you bought in terms of the profits you’ve made…..I suspect some of this is about whether people were brave enough to do it and whether some people in 2009 had enough accumulated equity at that point to be able to make the move.”

It will be interesting to see if history repeats itself…