Not in the National Interest

Market Comment From London

As the election in the US captures daily headlines, so does Britain’s referendum on European Union membership (or “Brexit” as it’s known) set for June 23rd continues as the their central news item. Obviously both have implications on the housing market, so we share this timely and thoughtful market comment from Nick Churton at Robert Paul Properties’ London office on real estate purchase and sale at a time of national and international uncertainty… 

Not in the National Interest (but in Your Own Interest)

“The real estate market is never static. But it is perhaps now at a unique juncture. It is hard to think of a time when the market was so politicised. After many hard years following the banking crisis and Great Recession we now face the US general election in November. On the other side of the pond there will be the UK European referendum in June when the entire adult British population gets to vote on whether to stay in or leave the European Union. All this coincides with a time of economic slowdown in many other important global economies. No market likes uncertainty and these political and economic events are tempting some buyers and sellers to wonder if they should wait for the dust to settle before moving.

But what if future events prevent the dust from settling? Perhaps after the Presidential election there will be something else to think about – a possible interest rate change, or some fresh global, economic or humanitarian crisis. The point is that our lives, although influenced by politicians, do not march to the drum of politics; they have their own rhythms – governed by personal events like leaving school, partnering or marriage, births, jobs, income changes, relocation, retirement, and – underlying it all – individual ambitions.

Some say there is never a perfect time to move home. But of course there is: it’s the time that is dictated by life. Whoever is in the White House or whether the UK is in or out of the European Union we all have personal agendas that largely ignore national and international affairs as we seek to provide for our families and ourselves. We don’t move home in the national interest. We move home in our own interest – to fulfil our own needs and ambitions. Despite what politicians may have us believe our own houses are rather more significant to us as individuals than the Houses of Congress in Washington or the Houses of Parliament in London. So perhaps it’s best to forget politicians when it comes to moving home and listen instead to our hearts – and our financial advisors.”