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TrevorS

The Future Of London

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Spring surge sees average cost of new London home hit £542000: http://www.standard.co.uk/news/london/spring-surge-sees-average-cost-of-new-london-home-hit-542000-8623823.html

"A spring surge — in which the young competed with foreign investors for the relatively few flats and houses for sale — pushed the average asking price of a newly-built property in Greater London to £542,266, up 6.8 per cent in a month and 10.3 per cent in a year, according to new figures.

Experts said it was the latest ominous sign of a property bubble in the capital, as the average asking price of all homes on the market across London also smashed the £500,000 barrier for the first time." "More than one in three of London’s first-timers have also received financial assistance from their families as they rush to beat rising prices."

Before someone points out asking prices <> selling prices: http://citywire.co.uk/money/house-prices-surge-15000-since-january/a672716 Sales achieving 97.05% of last advertised price.

Battersea Power Station flats sales break $1 billion barrier: http://www.standard.co.uk/news/london/battersea-power-station-flats-sales-break-1-billion-barrier-8623705.html

"A Malaysian consortium bought the station for £400 million last year..." "The flats have been marketed overseas in Singapore"

Chinese university in White City deal: http://www.standard.co.uk/news/london/chinese-university-in-white-city-deal-8623982.html

"One of China’s top universities plans to set up a new campus at the BBC’s former site in White City.". Expect even more Chinese investors buying flats for their kids to come study here. Don't expect any complaints about university fees or student loans.

This is why London property is so high right now: http://www.newstatesman.com/business/2013/05/why-london-property-so-high-right-now

"Singaporean buyers have benefited handsomely from the exchange rate making central London properties 10 per cent cheaper than five years ago and, further, strengthening of the euro has increased demand from continental buyers, particularly French and Italians." "The domestic market has also been buoyed by relaxed lending boosted by the launch of the Funding for Lending Scheme in August".

So the printing is devaluing the pound making it easier for foreign buyers and harder for locals, increasing inflation so decreasing locals' spending power, and directly inflating the bubble further.

London's £36bn benefits bill is bigger than the UK's whole defence budget : http://www.standard.co.uk/news/london/londons-36bn-benefits-bill-is-bigger-than-the-uks-whole-defence-budget-8623674.html

"The study by the Centre for Social Justice highlighted that £36 billion went on working-age welfare payments in 2011/12 in the capital, compared with defence spending of £33.8 billion."

"The number of children in workless households, nearly one in five according to the report, was the second highest in Europe, second only to the Former Yugoslav Republic of Macedonia."

The future then is a playground of opportunities for wealthy Asians and their offspring, serviced by a taxpayer-funded underclass. Where is the middle? That's who's paying the taxes.. and the rents. Probably around 53% of London households renting by now and I expect that figure to rise >60%.

I really wouldn't mind if they allowed new houses to be built by expanding the city to match the expanding population, which they resolutely refuse to. It feels like one goon is holding your arms while another is punching you in the stomach (and the BoE goon is kicking you in the goolies with QE boots).

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Spring surge sees average cost of new London home hit £542000: http://www.standard.co.uk/news/london/spring-surge-sees-average-cost-of-new-london-home-hit-542000-8623823.html

"A spring surge — in which the young competed with foreign investors for the relatively few flats and houses for sale — pushed the average asking price of a newly-built property in Greater London to £542,266, up 6.8 per cent in a month and 10.3 per cent in a year, according to new figures.

Experts said it was the latest ominous sign of a property bubble in the capital, as the average asking price of all homes on the market across London also smashed the £500,000 barrier for the first time." "More than one in three of London’s first-timers have also received financial assistance from their families as they rush to beat rising prices."

Before someone points out asking prices <> selling prices: http://citywire.co.uk/money/house-prices-surge-15000-since-january/a672716 Sales achieving 97.05% of last advertised price.

Battersea Power Station flats sales break $1 billion barrier: http://www.standard.co.uk/news/london/battersea-power-station-flats-sales-break-1-billion-barrier-8623705.html

"A Malaysian consortium bought the station for £400 million last year..." "The flats have been marketed overseas in Singapore"

Chinese university in White City deal: http://www.standard.co.uk/news/london/chinese-university-in-white-city-deal-8623982.html

"One of China’s top universities plans to set up a new campus at the BBC’s former site in White City.". Expect even more Chinese investors buying flats for their kids to come study here. Don't expect any complaints about university fees or student loans.

This is why London property is so high right now: http://www.newstatesman.com/business/2013/05/why-london-property-so-high-right-now

"Singaporean buyers have benefited handsomely from the exchange rate making central London properties 10 per cent cheaper than five years ago and, further, strengthening of the euro has increased demand from continental buyers, particularly French and Italians." "The domestic market has also been buoyed by relaxed lending boosted by the launch of the Funding for Lending Scheme in August".

So the printing is devaluing the pound making it easier for foreign buyers and harder for locals, increasing inflation so decreasing locals' spending power, and directly inflating the bubble further.

London's £36bn benefits bill is bigger than the UK's whole defence budget : http://www.standard.co.uk/news/london/londons-36bn-benefits-bill-is-bigger-than-the-uks-whole-defence-budget-8623674.html

"The study by the Centre for Social Justice highlighted that £36 billion went on working-age welfare payments in 2011/12 in the capital, compared with defence spending of £33.8 billion."

"The number of children in workless households, nearly one in five according to the report, was the second highest in Europe, second only to the Former Yugoslav Republic of Macedonia."

The future then is a playground of opportunities for wealthy Asians and their offspring, serviced by a taxpayer-funded underclass. Where is the middle? That's who's paying the taxes.. and the rents. Probably around 53% of London households renting by now and I expect that figure to rise >60%.

I really wouldn't mind if they allowed new houses to be built by expanding the city to match the expanding population, which they resolutely refuse to. It feels like one goon is holding your arms while another is punching you in the stomach (and the BoE goon is kicking you in the goolies with QE boots).

London has become a very strange place indeed................

This is not sustainable.

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London has become a very strange place indeed................

This is not sustainable.

Its as permanent as belief in central banks.

They distort everything in this particular world.

Edited by drunkincharge

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Riot anyone?

I cannot understand why nobody is! It is outrageous, what is more unbelievable is that it is almost continuously cited as a great thing! (High house prices) not rioting

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I cannot understand why nobody is! It is outrageous, what is more unbelievable is that it is almost continuously cited as a great thing! (High house prices) not rioting

I would relax. This foreign buy up is a great precursor to the coming inter generational take back . The powers that be and their boomer generation will never transfer tax liability to property whilst they all hold the voting power.

By the time my kids are in their twenties there will be sufficient numbers of asset less middle class to make sure that either income taxes come down or property taxes go up , probably both . Then these sales to foreigners will effectively look like exports where we sold something of little value to a foreigner and charged them for it in perpetuity until they gave the real value back .

Edited by Sir Harold m

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As per my london bubble thread...the london property market will collapse soon.

This has gone beyond bubble territory and is now the london housing mania. Peolpe will look back on this one day and think...what were those idiots thinking.

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London as well as being a capital city, is also a giant holiday park. Rich foreigners will pay high prices for homes, that bear no relation to the average salary locally. You can see the same effect in Marbella.

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London as well as being a capital city, is also a giant holiday park. Rich foreigners will pay high prices for homes, that bear no relation to the average salary locally. You can see the same effect in Marbella.

....and you know what happened to timeshare. ;)

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Sure its expensive for Britons, but London property has actually dropped in a lot of foreign currencies.

In the past five years GBP is down 25% in terms of Yen, 25% in terms of USD, and 40% in terms of CNY.

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London as well as being a capital city, is also a giant holiday park. Rich foreigners will pay high prices for homes, that bear no relation to the average salary locally. You can see the same effect in Marbella.

Acquiring a London property is also a social status in the developing world. If you can then get your kids into St. Pauls or Eaton even better.

I asked this on another thread but didn't get an answer. How do the super rich get past the visa requirements? I'm assuming in our utopian, fair play society that the 'elite' from the developing world face the same restrictions as the peasants.

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Acquiring a London property is also a social status in the developing world. If you can then get your kids into St. Pauls or Eaton even better.

I asked this on another thread but didn't get an answer. How do the super rich get past the visa requirements? I'm assuming in our utopian, fair play society that the 'elite' from the developing world face the same restrictions as the peasants.

I believe that you can get residency if you show you will invest a certain amount, it may be just a million which is nothing to those people.

Edit -just checked, under Tier 1 you need just 200k as an entrepreneur investor, although the govt states there is indefinite leave to remain if you create 10 jobs or your company reaches turnover of 5 million in a 3 year period.

Edited by Trampa501

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I believe that you can get residency if you show you will invest a certain amount, it may be just aust a million which is nothing to those people.

I think it excludes property (and shares?).

The problem is not the million but the management of a business in a foreign land. Some will be investing but I reckon many are just claiming political asylum and 'persecution'. That's certainly the case with some rich South Asians and Persians that I've come across. I think there's another cesspit here waiting to be uncovered.

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Acquiring a London property is also a social status in the developing world. If you can then get your kids into St. Pauls or Eaton even better.

Because of my job I travelled a lot to emerging markets; Russia, China, Brazil, India, Vietnam, Eastern Europe.

I quickly realised it's not the super rich of the world driving up UK prices (after all, there's not that many of them), but every where I'd go there would be reasonably successful middle managers in Emerging Market businesses asking me about UK property. Often they would have children planning on attending a UK university, and they were thinking of buying a flat or small house for their kids to live. Or it would be people worrying about the political future in their own country. And these weren't billionaires, just middle to upper middle managers.

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It's becoming clear that there will be no significant crash in London until something happens to dissuade foreign buyers. Any moderate falls will just provide more of an incentive, helped along by high inflation.

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It's becoming clear that there will be no significant crash in London until something happens to dissuade foreign buyers. Any moderate falls will just provide more of an incentive, helped along by high inflation.

The supply of greater fools is always finite.

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I wonder how many are buying a share in a house......and rent out to people that don't contribute to the country because they don't live and work here.........once the house has been sold the next time sold the chances the money will filter back overseas........you can only capture the money and recirculate within the country the first time it is sold abroad......what are the chances of ever seeing that value again? ;)

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The supply of greater fools is always finite.

As is the supply of London property. If prices hold, it will encourage foreign buyers, and if prices fall moderately, it will encourage a new swathe of foreign buyers who couldn't afford skin in the game at the higher price.

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As is the supply of London property. If prices hold, it will encourage foreign buyers, and if prices fall moderately, it will encourage a new swathe of foreign buyers who couldn't afford skin in the game at the higher price.

Taxes could put a damper on it......if that is the way they want to play it, they can change it anyway they want to.....all boils down to who and what they value most. ;)

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Taxes could put a damper on it......if that is the way they want to play it, they can change it anyway they want to.....all boils down to who and what they value most. ;)

I wonder what would happen the the UK's already dire balance of payments if we stopped foreigners buying London property. It's depressing but all we've got left to trade with Arabs for their oil are nice flats in Marylebone.

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I wonder what would happen the the UK's already dire balance of payments if we stopped foreigners buying London property. It's depressing but all we've got left to trade with Arabs for their oil are nice flats in Marylebone.

Actually the UK structural deficit is one of the core reasons for foreign money flooding into land prices.

you get plastic dog poop and the foreign creditors get prime state enforced scarcity and monopoly of resource wrapped up in tax haven status, everyones a winner

Edited by georgia o'keeffe

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  • 239 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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