Everyone seems to be talking about Brexit, its political implications, its financial implications and what it means for the future of the EU. What you don’t hear a lot about is how Brexit might affect real estate — and the answer is “it’s a mixed bag.”
Anyone with money in the markets knows that things have been a bit rocky with currency fluctuations (we’re talking about you, British Pound) and investor tepidness with fears that the rising dollar may negatively affect the American export market. Corporate bonds have also been on a bit of a ride as the most recent growth and foreign market projections seem about as current as a 1937 St. Louis phonebook.
With Europe already dealing with refugees, uncertain natural gas contracts and financially questionable member-partners, the EU needed the Brexit vote like Brazil needs more mosquitoes. When investors feel like they are being tossed around by a stormy sea, the one leeward port they turn to is US Treasury Bonds. Considered by almost everyone in the universe as the most stable investment in existence, as more people buy bonds, the price of the bonds goes down.