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Bbc: Brexit Sparks Overseas Spending Spree In London Property - Merged Topics.

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The pound's devaluation following the EU referendum has triggered a spending spree in London's property market from foreign investors.

But these overseas buyers are no longer just targeting prime central locations.

Changes in stamp duty mean that they are now interested in cheaper properties - pitting them head-to-head against jittery first-time buyers.

Full video report here: http://www.bbc.co.uk/news/uk-politics-uk-leaves-the-eu-37260267

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Absolute rubbish. It makes me laugh when I hear this form VIs. Why would a foreign buyer invest in the UK now. They are NOT entitled to live in the UK (with Brexit this will apply to Europeans now too) So they can only buy as investment. BUT rents are also in £. So a falling £ makes no difference. The yields are the same.

Plus why invest for capital gains when £ likely to fall further and additionally the mega bubble is about to burst.

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Absolute rubbish. It makes me laugh when I hear this form VIs. Why would a foreign buyer invest in the UK now. They are NOT entitled to live in the UK (with Brexit this will apply to Europeans now too) So they can only buy as investment. BUT rents are also in £. So a falling £ makes no difference. The yields are the same.



Plus why invest for capital gains when £ likely to fall further and additionally the mega bubble is about to burst.

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I saw a brief reference to this on the BBC today, they made reference to Colindale and apparently are going after a number of limited areas that they think still represent value....typical story of buying 5 at a time.

Agree with above statement that it appears odd given the volatility.

Is there any data that supports a surge in Colindale for example?

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The extent of the 'spree' and 'surge' wasn't backed up by any numerical evidence, but taking it at face value FTBs are being deprived of the chance to buy by overseas money and this will add to the political backlash.

We also don't know whether the overseas money is going into existing housing or new developments (as in the report), but if it's the latter at least these flats are going to hit the rental market more quickly than if they were hanging around waiting to be sold.

Those investors are not wise, but of more immediate concern than their eventual losses is that they're the greater fools keeping the market afloat at current prices.

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I can never understand the rationale of overseas buyers who buy expensive London properties. Sure, if you live in the UK then you can get caught up in the panic of buying before prices rise beyond your reach. And even if you pay over the odds you are getting some value from the purchase, as somewhere to live. But if you are overseas then the UK property market must look like a spectacular bubble ready to burst, especially compared to other areas in the EU (where prices have not inflated so rapidly, particularly where employment and quality of life are both high). And your investment will be at the whims of a UK government who could change the rules at any moment to meet its stated aim of improving home ownership.

Bear in mind as well that, if you are an overseas investor with at least half a million quid burning a hole in your pocket then it is fair to assume that you have a decent head for business. Why would anyone who is financially savvy put a massive wodge of cash into an expensive illiquid, volatile asset which is showing signs of being at a peak bubble price?

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This might be relevant... "London’s old elite is discovering how it feels to be priced out"




"The most appropriate response is: welcome to our world. It seems that the most privileged chickens have finally come home to roost. I’m not clucking, but the sweet smell of schadenfreude is hard to resist entirely when the other 98 per cent of the population has been experiencing this very phenomenon for years and years. "

Edited by dryrot

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[deleted]

Bear in mind as well that, if you are an overseas investor with at least half a million quid burning a hole in your pocket then it is fair to assume that you have a decent head for business. Why would anyone who is financially savvy put a massive wodge of cash into an expensive illiquid, volatile asset which is showing signs of being at a peak bubble price?

I think its the "bolthole" issue. Really, anyone in the Middle East or China who can squirrel out 500k (and there must be many) may find a 2-bed flat in Tooting a good home for it. A lot of the worlds middle/upper class are sweating.

Edited by dryrot

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Absolute rubbish. It makes me laugh when I hear this form VIs. Why would a foreign buyer invest in the UK now. They are NOT entitled to live in the UK (with Brexit this will apply to Europeans now too) So they can only buy as investment. BUT rents are also in £. So a falling £ makes no difference. The yields are the same.

Plus why invest for capital gains when £ likely to fall further and additionally the mega bubble is about to burst.

Buyers like that Hong Kong couple don't care about rents. Rents are just icing on the cake when you're a cash buyer. All they care about is capital appreciation, which is running at double digits in some parts of London. And residency issues haven't stopped the corrupt thieves of the world stashing their money in London before. This ostrich mentality on here really annoys me, the devalued pound with no curbs in foreign buyers was always going to result in this. It's another firesale that shafts first time buyers. I'd like to grab that couple by the scruff of their necks, seize their property and kick them out of the country.

Edited by Amiinsane

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I can never understand the rationale of overseas buyers who buy expensive London properties. Sure, if you live in the UK then you can get caught up in the panic of buying before prices rise beyond your reach. And even if you pay over the odds you are getting some value from the purchase, as somewhere to live. But if you are overseas then the UK property market must look like a spectacular bubble ready to burst, especially compared to other areas in the EU (where prices have not inflated so rapidly, particularly where employment and quality of life are both high). And your investment will be at the whims of a UK government who could change the rules at any moment to meet its stated aim of improving home ownership.

Bear in mind as well that, if you are an overseas investor with at least half a million quid burning a hole in your pocket then it is fair to assume that you have a decent head for business. Why would anyone who is financially savvy put a massive wodge of cash into an expensive illiquid, volatile asset which is showing signs of being at a peak bubble price?

That point is key, in that they're backing the jockey, not the horse.

The UK government has demonstrated time and again that, despite assurances to the contrary, they are going to keep frantically whipping up UK property until they're left flogging the proverbial dead horse. I don't know how this will all end, but it's not going to be pretty.

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Anecdotal - but I haven't see any evidence of this from my viewings/discussions with agents since Brexit.

Usually they are the first to drop that other investors, BTLs or upsizers are helping push up prices - however the overriding message has been that buyers are willing to be pretty flexible over asking prices, as is more of a buyers market now.

(thats not to say it isn't happening, but if it is, I'm not seeing it)

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That point is key, in that they're backing the jockey, not the horse.

The UK government has demonstrated time and again that, despite assurances to the contrary, they are going to keep frantically whipping up UK property until they're left flogging the proverbial dead horse. I don't know how this will all end, but it's not going to be pretty.

The government is and will always be out for itself. People in positions of power are simply pandering to the elites.

They provide a smoke screen of democracy in order to make the unequal resource allocation appear some how fair. It is a trick used since humanity had tribes. Its why you see pictures of prince George to highlight how "cute" he is. You don't overthrow or take resources from people you've grown up thinking are cute. Many historians have written about this.

Think for yourself. If something is too good to be true it usually is. When you see prices rising and there is no profit motive, there is always other geopolitical reason. People think too domestically. The world is a big place full of all sorts of terrible issues.

For what its worth - I think the devaluation of the Yuan is almost a poltical certainty at this point. Anyone in China with money (and there are a lot of people who have $5-50m) will be trying to get it out. London has the connections (via Hong Kong) to make this happen. If you're choices are, lose everything or have something with legal protections, you can see why London property becomes attractive. All the tax changes and exchange rates changes will not matter for those people. Why care about even a 30-40% drop when the alternative is a 100% theft. Obviously the domestic population suffers - this is irrelevant to the government until there is a riot or someone trying to take power from them by offering the people more. Then it becomes a game of who can convince the people they can provide whilst also taking money from the elites to do their bidding. This is what is happening in the USA right now. The media has been bought for quite some time, their reporting is often skewed and with the internet most people are seeing fractures in "the matrix" of information they use to calibrate how their view of the world works.

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The FLS free money giveaway housing ponzi prop with triumphed by such s**te from the government propagandist arms.

Here we go again.

The desperation is there for all to see

Edited by TheCountOfNowhere

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I think its the "bolthole" issue. Really, anyone in the Middle East or China who can squirrel out 500k (and there must be many) may find a 2-bed flat in Tooting a good home for it. A lot of the worlds middle/upper class are sweating.

What is the point of buying a "bolthole" where you have no right to live?

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http://www.bbc.co.uk/news/uk-politics-uk-leaves-the-eu-37260267 @BBCNews @theresa_may It's time these foreign owned properties were confiscated and used as council houses !!!

Foreign buyers, in light of the German "protest" vote, would do well to consider what the British people will eventually demand.

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What is the point of buying a "bolthole" where you have no right to live?

Its not that hard to get citizenship. Or even fall off the radar. And if your country looks like turning into Syria...

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According to a timely email from one of the London Estate Agents just now:

"First-time buyers are now the most prolific buyers across all Prime London, accounting for more than a third (34%) of purchases as investor activity took a back seat."

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