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wonderpup

Help To Buy And The Oligarchs

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This is pure speculation on my part but it's an idea somebody put to me recently and I wondered what others thought.

So, say you are just an average everyday Oligarch in search of a home for some of your ill gotten gains, and your gaze turns to London. It's an international city, stable society- lots of cops to keep the peasants under control- good restaurants ect ect- what's not to like?

So you figure why not park some cash London property? But- being smarter than your average Oligarch you are aware that property can lose value as well as gain it, so you take the time to suss out the lay of the land- is this a safe place to invest in property- will there be a crash?

And what do you see? Well you see the British Government standing behind the mortgage lenders with Help to Buy! What clearer signal could you wish for than that?- HM Government are so committed to high property values and crash avoidance that they have abandoned every 'free market' principle they ever claimed to believe in just to keep those prices up.

Now I'm not arguing of course that the central London market is being directly propped up by help to buy- but what I am suggesting is that the very efforts that Osborne and Cameron are making to keep the bubble inflated are in fact acting as a lure for the 'High net worth' individual to park his cash in London real estate because it signals a Government level commitment to avoiding a property price correction.

So in other words the bubble in Central London property that threatens destroy the Help to Buy scheme could in part be driven by that very scheme- if only because it reassures overseas investors that HM Government will do all in it's power to protect the value of their investment.

So- tin foil hat? Or is there something in this?

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This is pure speculation on my part but it's an idea somebody put to me recently and I wondered what others thought.

So, say you are just an average everyday Oligarch in search of a home for some of your ill gotten gains, and your gaze turns to London. It's an international city, stable society- lots of cops to keep the peasants under control- good restaurants ect ect- what's not to like?

So you figure why not park some cash London property? But- being smarter than your average Oligarch you are aware that property can lose value as well as gain it, so you take the time to suss out the lay of the land- is this a safe place to invest in property- will there be a crash?

And what do you see? Well you see the British Government standing behind the mortgage lenders with Help to Buy! What clearer signal could you wish for than that?- HM Government are so committed to high property values and crash avoidance that they have abandoned every 'free market' principle they ever claimed to believe in just to keep those prices up.

Now I'm not arguing of course that the central London market is being directly propped up by help to buy- but what I am suggesting is that the very efforts that Osborne and Cameron are making to keep the bubble inflated are in fact acting as a lure for the 'High net worth' individual to park his cash in London real estate because it signals a Government level commitment to avoiding a property price correction.

So in other words the bubble in Central London property that threatens destroy the Help to Buy scheme could in part be driven by that very scheme- if only because it reassures overseas investors that HM Government will do all in it's power to protect the value of their investment.

So- tin foil hat? Or is there something in this?

Yes, but these oligarchs are just a drop in the ocean.I am also sure that they take the UK banks' mortgages.Why risking your own money?-

If there is a crash, Gov. will bail out everyone including you, Mr Oligarch.

Government is claiming both versions about HTB as it suits them (many people were " helped" or not many people were "helped").

HTB'a aim is to lure (reassure) all kinds of domestic parasites that include large builders, banksters, various "funds", ... that prices will always go up.

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