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Wealthy Buyers Flock To London To Buy Properties

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http://www.bloomberg.com/news/2011-02-28/london-s-luxury-homes-attract-overseas-buyers-seeking-financial-stability.html

London's Luxury Homes Attract Overseas Buyers Seeking Financial Stability
By Simon "Symon" Packard - Feb 28, 2011 12:00 AM GMT
The scarier things get, the better London homes look to the world’s rich.
A widening range of foreign nationals bought houses and apartments in the British capital worth more than 1 million pounds ($1.61 million), lifting values for the fourth consecutive month in February, according to property broker Knight Frank LLP. Greeks and Spaniards increased investment as their economies reeled and Asians sought a hedge against inflation.
London property is drawing investors facing financial and political instability in their home markets, according to Liam Bailey, Knight Frank’s head of residential research. The overthrow of the Tunisian and Egyptian rulers, triggering uprisings in Libya, Bahrain, and Yemen, will probably bring more Middle East money to London as the rich seek to protect their wealth, Bailey said.

And of course, the fleeing Arab troughers will have no immigration controls just an intent to keep London HPI going.

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"Flock"? What is up with 'journalism' these days?

Perhaps it should read like "London offers bunkers of last resort for deposed despots."

Why is this a good thing? Does Britain need more corrupt, evil men? I thought we were full.

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Isn't this story ten years old, and it just keeps getting recycled every year?

How many "foreigners" are selling up? Strange the report doesn't mention that.

What do you call "flocking" when it is actually just a steady stream in and out?

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http://www.bloomberg.com/news/2011-02-28/london-s-luxury-homes-attract-overseas-buyers-seeking-financial-stability.html

A widening range of foreign nationals bought houses and apartments in the British capital worth more than 1 million pounds ($1.61 million), lifting values for the fourth consecutive month in February, according to property broker Knight Frank LLP. Greeks and Spaniards increased investment as their economies reeled and Asians sought a hedge against inflation.

Looks like this highest end of the market, will carry on helping keep those average house price monthly stats looking more positive, even if the price of the typical 2/ 3/4 bed family home in the rest of the country, has gone well down in price.

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aye, i mean, this story is very old

Example from spring 2007

...The early part of 2007 saw an incredibly active market, with price growth totaling nearly 11.9 per cent in the first quarter.

"Even after 18 months of strong price appreciation, the pace of growth has if anything quickened over time. In the six months to April 2007, monthly price growth averaged 2.8 per cent, compared to only 1.7 per cent in the same period to April 2006.

"Prices in central London are now over 33 per cent higher than they were a year ago, and in some locations growth is over 40 per cent (Knightsbridge and Belgravia).

...

"The strong performance of the top end of the market can be attributed, at least in part, to the continuing health of the City economy and the bonus season. However, it is our experience that whilst there have been growing numbers of deals completed by City workers, it is the influx of overseas buyers, European, Russian, Indian and increasingly Middle Eastern, which is the key to the substantial price growth seen in many areas of Central London.

...

gotta love the euphemism, "price growth". it's inflation. call a spade a spade, please.

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I encounter the "foreign buyers will keep prices up" attitude all the time in London. I think they're imagining that some Saudi prince will be shown round their dilapidated 1930s semi in Chigwell by a spiky-haired teenager and say, "ah yes, I will add this magnificent residence to my pwoperdee portfolio along with my ten palaces and chain of 5 star hotels".

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Why are all their wealthy people who have ammassed fortunes so stupid ? Surely they must recognise the biggest housing bubble in the world and the most likely to lose 50% of your money on ? If you are that stupid how do you become so wealthy ? Property ? :lol::lol::lol::lol:

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Well, it worked for Gaddafi's son - NOT!

Home owned by Gaddafi family in Hampstead Garden Suburb taken off market

THE mansion belonging to the Gaddafi family in Hampstead Garden Suburb has been taken off the market.

On Friday the Times Series revealed the neo-Georgian eight-bed home in Winnington Close had been put up for sale as the future of Colonel Gaddafi as Libyan leader became increasingly uncertain. However, over the weekend estate agents Knight Frank took the for sale signs on the property, which was listed at £10.9m, down.

Yesterday Prime Minister David Cameron said the Government had frozen all assets owned by the family, following a call from Finchley and Golders Green MP Mike Freer on Thursday. Neighbours living near the property in the exclusive area just a street away from ‘billionaire’s row’ in Bishops Avenue said they had not seen anyone living at the house for more than a year.

I also note that Berezovksy has been granted permission to sue Abramovich for £2bn. Perhaps London will be looking a little less like a criminals paradise in years to come. Well, we can dream can't we?

Edited by Sledgehead

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there does seem to be a market for these large (5 or 6 beds, 2,500+ sq ft) and expensive houses, but what I ahve noticed over the past 3 (in SW London) or so years is that prices havent fallen, what does sell, seems to be going to close or slightly more than 2007 prices, but people are putting the houses on more and more ridiculously over inflated prices and additionally the houses are on teh market for a long long time - at least 9 months and sometimes up to 2 years.

recent examples include 5 bed house, asking price £2m, previously max price sold on this street: £1.3m

5 bed house: asking price £2.3m, previously max price sold on this street: £1.6m

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STOP PRESS - "Rich people continue to buy expensive houses in London. "

Why exactly is this a story ? When was the last time this was NOT true ? Anyone care to guess ?

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I think wealth in these countries is partially accident of birth

if you are a close relative of hosni Mubarak you will be rich

so no special brilliance in much of these people

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Why are all their wealthy people who have ammassed fortunes so stupid ? Surely they must recognise the biggest housing bubble in the world and the most likely to lose 50% of your money on ? If you are that stupid how do you become so wealthy ? Property ? :lol::lol::lol::lol:

An Arab oil sheik has wealth "beyond measure" so a £10m home is inconsequential as is a £5m drop in value if they sell later on (or give it away to a cousin for their wedding gift).

The super rich are not interested in the price of things they buy for themselves.

Edited by Realistbear

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An Arab oil sheik has wealth "beyond measure" so a £10m home is inconsequential as is a £5m drop in value if they sell later on (or give it away to a cousin for their wedding gift).

The super rich are not interested in the price of things they buy for themselves.

That is why they would not be interested in a poorly constructed,with bad sound insulation, squashed together square box of a two bed dependent on state money to maintain its value. ;)

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Why are all their wealthy people who have ammassed fortunes so stupid ? Surely they must recognise the biggest housing bubble in the world and the most likely to lose 50% of your money on ? If you are that stupid how do you become so wealthy ? Property ? :lol::lol::lol::lol:

Easy come easy go.

In Tunisia each bank lent the presidents family over 100 million dinars (400 million £).

If you needed a loan as a pleb you paid......5%+

Them....some loans under 1%! then used to buy hotels/homes and businesses.

Loads of 200K+£ flats empty in Tunis waiting for a mug foreigner......which wont happen now and the plebs will be holding the baby.

When your stealing you overpay as got to get that cash out of the bank/suitcase.

If they are so desperate they should pay double stamp duty.

Edited by Fromage Frais

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A close Londoner friend of mine with old links to the 1980s banking generation is convinced that the last decade of international super-rich investment in London is destroying the capital's economy, and when it goes, London will be in an unholy mess.

The first problem is the ripple effect of super-wealth being injected into the pool; it pushes everyone outwards, which is why places like Notting Hill have become havens for upper middle class Brits that once would have lived in Kensington and Chelsea, and so on and so on, until you get retail assistants having to live miles and miles out of the capital at great cost to their wage packet in terms of transport and inflated housing costs.

The second problem is the economic implications of the pattern change in economic demand when the super rich take over an area, ie. what they buy and where they shop. For the most part, they do not live in a property full time, so you have a housing unit that is kinda "fallow" in terms of wider economic activity for a significant part of the year. Then when they do turn up, their goods spend tends to be "globalist", often on luxury goods that are part of huge multinationals. Indeed, the only localistic spend tends to be on low-cost services ... cleaners, drivers, that sort of thing.

What this has done, according to my mate, is bolster a scenario where everyone works for everyone else in a service capacity, with the super rich at the top of the tree.

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A close Londoner friend of mine with old links to the 1980s banking generation is convinced that the last decade of international super-rich investment in London is destroying the capital's economy, and when it goes, London will be in an unholy mess.

The first problem is the ripple effect of super-wealth being injected into the pool; it pushes everyone outwards, which is why places like Notting Hill have become havens for upper middle class Brits that once would have lived in Kensington and Chelsea, and so on and so on, until you get retail assistants having to live miles and miles out of the capital at great cost to their wage packet in terms of transport and inflated housing costs.

The second problem is the economic implications of the pattern change in economic demand when the super rich take over an area, ie. what they buy and where they shop. For the most part, they do not live in a property full time, so you have a housing unit that is kinda "fallow" in terms of wider economic activity for a significant part of the year. Then when they do turn up, their goods spend tends to be "globalist", often on luxury goods that are part of huge multinationals. Indeed, the only localistic spend tends to be on low-cost services ... cleaners, drivers, that sort of thing.

What this has done, according to my mate, is bolster a scenario where everyone works for everyone else in a service capacity, with the super rich at the top of the tree.

+

Not good to own the local pub in such places.

The super rich are the heros or globalisation they have so much money its just incredible. Always good to have a bolt hole away from the masses just in case they cotton on to your thieving which is happening now.

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I encounter the "foreign buyers will keep prices up" attitude all the time in London. I think they're imagining that some Saudi prince will be shown round their dilapidated 1930s semi in Chigwell by a spiky-haired teenager and say, "ah yes, I will add this magnificent residence to my pwoperdee portfolio along with my ten palaces and chain of 5 star hotels".

:D:D:rolleyes: 11/10. :P

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http://www.bloomberg.com/news/2011-02-28/london-s-luxury-homes-attract-overseas-buyers-seeking-financial-stability.html

London's Luxury Homes Attract Overseas Buyers Seeking Financial Stability
By Simon "Symon" Packard - Feb 28, 2011 12:00 AM GMT
The scarier things get, the better London homes look to the world’s rich.
A widening range of foreign nationals bought houses and apartments in the British capital worth more than 1 million pounds ($1.61 million), lifting values for the fourth consecutive month in February, according to property broker Knight Frank LLP. Greeks and Spaniards increased investment as their economies reeled and Asians sought a hedge against inflation.
London property is drawing investors facing financial and political instability in their home markets, according to Liam Bailey, Knight Frank’s head of residential research. The overthrow of the Tunisian and Egyptian rulers, triggering uprisings in Libya, Bahrain, and Yemen, will probably bring more Middle East money to London as the rich seek to protect their wealth, Bailey said.

And of course, the fleeing Arab troughers will have no immigration controls just an intent to keep London HPI going.

Absolutely crazy. I am looking for somewhere "prime" (I suppose although I hate the term) in North London (NW3) and the agents have buyers all over them offering asking price for very ordinary, inflated properties and as you would expect they are suitably smug about it. Interestingly the internal areas are also being inflated (lied about!) so you overpay even more.

I first joined HPC in 2005 expecting a crash soon. I have not posted for a few years, although I have been lurking occasionally. Now in 2011 I realise I have been consistently wrong about the property market, at least in London. I would love it to crash but it seems totally resilient to all economic shocks. i wonder if interest rate rises will even make any difference, as the EAs seem to imply everyone is a cash buyer without any need to sell or obtain a mortgage...

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Absolutely crazy. I am looking for somewhere "prime" (I suppose although I hate the term) in North London (NW3) and the agents have buyers all over them offering asking price for very ordinary, inflated properties and as you would expect they are suitably smug about it. Interestingly the internal areas are also being inflated (lied about!) so you overpay even more.

I first joined HPC in 2005 expecting a crash soon. I have not posted for a few years, although I have been lurking occasionally. Now in 2011 I realise I have been consistently wrong about the property market, at least in London. I would love it to crash but it seems totally resilient to all economic shocks. i wonder if interest rate rises will even make any difference, as the EAs seem to imply everyone is a cash buyer without any need to sell or obtain a mortgage...

Nothing will shake prices down, not even hihger IR. The property market has only one vulnerable spot that can cause it to crash: job losses.

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Nothing will shake prices down, not even hihger IR. The property market has only one vulnerable spot that can cause it to crash: job losses.

In which case London property is secure...it is not a city that relies too heavily on public employment.

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Absolutely crazy. I am looking for somewhere "prime" (I suppose although I hate the term) in North London (NW3) and the agents have buyers all over them offering asking price for very ordinary, inflated properties and as you would expect they are suitably smug about it. Interestingly the internal areas are also being inflated (lied about!) so you overpay even more.

I first joined HPC in 2005 expecting a crash soon. I have not posted for a few years, although I have been lurking occasionally. Now in 2011 I realise I have been consistently wrong about the property market, at least in London. I would love it to crash but it seems totally resilient to all economic shocks. i wonder if interest rate rises will even make any difference, as the EAs seem to imply everyone is a cash buyer without any need to sell or obtain a mortgage...

The market stays irrational longer than you stay liquid. Either get as rich as those guys, or give in and buy that £1m 3-bed terrace house... :huh:

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http://www.bloomberg...-stability.html

London's Luxury Homes Attract Overseas Buyers Seeking Financial Stability
By Simon "Symon" Packard - Feb 28, 2011 12:00 AM GMT
The scarier things get, the better London homes look to the world's rich.
A widening range of foreign nationals bought houses and apartments in the British capital worth more than 1 million pounds ($1.61 million), lifting values for the fourth consecutive month in February, according to property broker Knight Frank LLP. Greeks and Spaniards increased investment as their economies reeled and Asians sought a hedge against inflation.
London property is drawing investors facing financial and political instability in their home markets, according to Liam Bailey, Knight Frank's head of residential research. The overthrow of the Tunisian and Egyptian rulers, triggering uprisings in Libya, Bahrain, and Yemen, will probably bring more Middle East money to London as the rich seek to protect their wealth, Bailey said.

And of course, the fleeing Arab troughers will have no immigration controls just an intent to keep London HPI going.

I think those wealthy arabs are already loaded to the hilt with London property and have been since the 70s. This is just VI spin.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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