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Russians Panic Buying London Properties

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haha, bet the losers on HPC that have been debating (wrongly, as usual) about what happens to Russians and the London property market have been answered. Higher stamp duty? So what!

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Unless they have £ $ euro it`s going to be an expensive safe haven

How long are they going to hold these "assets" until it`s all back to normal/safe? ...could end up losing 50% on currency alone missed the boat me thinks or more likely top end EA`s BS spin straight from the Wilson's text book

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Yeah, yeah, London, and the rest of the world... and, from what I hear... in Russia itself. What complete and utter tosh. The spinmeisters have excelled themselves. If anything, London is off the radar due to risk of action against Russian assets... Bulgaria appears to be one of the main destinations for Russian cash, though.

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Meh...

However, as the rouble depreciates London could see this trend reverse over the long-term as the UK becomes more expensive to Russians.

"Given that the influx of Russian money to prime central London significantly contributed to an overheating market, it surely follows that a reversal in demand from cash-strapped Muscovites will potentially have a significant adverse effect on the likes of Kensington, Belgravia and Mayfair," said Russell Quirk, founder of online estate agent, eMoov.

"A plummeting Russian stock market will effectively freeze previously liquid assets and a tumbling rouble will have the effect that London has just got dearer."

http://www.telegraph.co.uk/finance/economics/11299644/Russian-economic-meltdown-sparks-wave-of-panic-buying-London-homes.html

11bt0r6.jpg

http://content.knightfrank.com/research/185/documents/en/autumn-2514.pdf

Edited by Neverwhere

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My first thought was... So London property is the new gilt market.

State backed assets that cannot lose their value, brilliant. Safe haven in every financial crisis.

No wonder we can't afford our homes.

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So ...

Russians are deserting London in their droves.

Russians are queuing up to buy prime London properties.

Russians have deserted the UK property market.

Russians are panic-buying in super-prime London.

Reminds me of apocryphal stories of Russian troops arriving in Britain during the First World War. Rumours of snow on the platform at Charing Cross. Salvation for the housing market's vested interests.

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This was written by Anna White, the same journo that has bi-polaresque swings in opinion on seemingly alrternate articles, and has some apparent issues with understanding the data that she's writing about:

http://www.housepricecrash.co.uk/forum/index.php?/topic/201427-telegraph-high-end-london-house-prices-being-slashed-properties-in-prime-central-london-down-20pc-in-value/?hl=%20anna%20%20white

Don't think I'll rush out and panic buy in Mayfair just on her opinion.

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Or not....

Russians Quit London Luxury-Homes as Only Super Rich Stay

Wealthy Russian homebuyers are vanishing from London after driving a wave of foreign investment that lifted property prices to records. Only the oligarchs persist.
The number of Russians registered through Christie’s International Real Estate to buy homes in the city dropped by 70 percent in a year, said Giles Hannah, the broker’s senior vice president.

http://www.bloomberg.com/news/2014-12-17/russians-quit-london-luxury-homes-as-only-super-rich-stay.html

Edited by Eddie_George

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Let me get this right - Russians are buying property in a falling market with a currency that's halved in value in a matter of days? So they're paying double for property that's losing value? Is this like a game of Brewster's Millions they're playing? And it's not like property transactions can finalise in minutes or hours, surely? You're looking at a few days, in which time, the rouble could fall further - why not invest in something more instantaneous like shares or another currency? Sounds like a crappy PR stunt by an EA.

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Let me get this right - Russians are buying property in a falling market with a currency that's halved in value in a matter of days? So they're paying double for property that's losing value? Is this like a game of Brewster's Millions they're playing? And it's not like property transactions can finalise in minutes or hours, surely? You're looking at a few days, in which time, the rouble could fall further - why not invest in something more instantaneous like shares or another currency? Sounds like a crappy PR stunt by an EA.

Maybe.

I think a lot of people on here though do not understand the motivation behind the Russian/Chinese investment outside of their home country.

Sometimes losing half your money can look positively attractive compared to the alternative.

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Maybe.

I think a lot of people on here though do not understand the motivation behind the Russian/Chinese investment outside of their home country.

Sometimes losing half your money can look positively attractive compared to the alternative.

Indeed

Nevertheless the hpi journalist bulls continue to find anything - a booming Russia or a collapsing Russia - positive for hpi

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Maybe.

I think a lot of people on here though do not understand the motivation behind the Russian/Chinese investment outside of their home country.

Sometimes losing half your money can look positively attractive compared to the alternative.

I would think anyone who have managed to amass millions of pounds would be capable of finding a better home for their money than London houses Swiss banks off shore banks or even a UK bank

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You have you award artistic merit points to the EAs and their PR people, though - this really is a masterpiece of spin!

They actually have a board game called "Turn the irrelevant news story into a plausible account of property price rises", apparently. Challenges include new IVF technology, re-release of 1950s movies, and auction of Elizabethan memorabilia...

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I would think anyone who have managed to amass millions of pounds would be capable of finding a better home for their money than London houses Swiss banks off shore banks or even a UK bank

Maybe they've already got a lot of money in swiss banks and Uk banks. Maybe they want to diversify their assets and have a place to go to.

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Are foreigners allowed to buy property in Russia? I can see armies of boomers rushing to snap up Moscow bargains as the rouble tanks. Making property unaffordable for local oligarchs.

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Buying house in Russia

Legislation in 2001 brought the opening up of real estate to foreign investment.

Fill yer boots on rouble denominated property.

Sale transactions always take place in banks. The buyer deposits the full purchase cash amount in a safe deposit box on the condition that the bank will release the money to the seller only upon the presentation of the complete package of registered documents under the buyer’s name.

Sounds like a great money laundering opportunity. Maybe we can export some of our criminals and Russia can sell us some of their houses.

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