In case you missed the big Brexit story this past week, there was a big referendum held last week, at which the UK voted in favour of leaving the EU. Naturally, this story has made headlines worldwide, and the effects of this move will have a global impact as well.
While the effects of the Brexit remain to be seen, we will learn more as the situation unfolds elsewhere. However, this is what experts are predicting for Canadian real estate as a result of this move.
Markets may right themselves in the days ahead. But negotiating the divorce could take a decade: at least two years of wrangling under Article 50, the escape clause in the EU’s founding treaty, and then many more years to extricate Britain from all matter of trade deals, regulatory arrangements and the like. The uncertainty of it all will kill business confidence and deflect international investment. Big global banks such as JP Morgan Chase and Citibank have already warned they will slash tens of thousands of jobs because they no longer will be able to adequately serve their European clients from London. British exporters could lose the preferential access they have with dozens of countries that have negotiated trade agreements with the EU. [Money Sense]
At this time, if you’re concerned about your finances or your investments, it’s probably best to seek the advice of your financial advisor or someone you trust in the industry. You can also direct any questions my way, especially around the impact of this on the housing market here.
