The vote by the UK to leave the EU continues to benefit US real estate. US bonds, and US real estate, look more appealing to global investors as a safe haven.
As longtime readers know, I've been concerned that we are nearing the end of the cycle in many types of commercial real estate (most notably, luxury apartments). I've also been concerned about low bond yields wiping out investors in supposedly safe bonds.
These concerns haven't changed, but the timeline for any "day of reckoning" is looking farther out. It won't be until we see a meaningful increase in interest rates that these things come to pass. Now with the EU chaos, we've seen lower rates.
It will take two years to sort the Brexit, and that may be just the beginning: rumblings about France leaving the EU have started. If France were to leave the EU, that would be the nail in the coffin of the EU. It would make the US seem even more desirable as a place to invest.
Thus, unless and until there's perceived stability in the EU, the USA will continue reaping substantial benefits.
Take advantage of this opportunity, and make sure you've refinanced any real estate you own. Whether residential or commercial, the opportunities are quite exceptional.
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