Buys 1200 apartments in london

[simvastatin]

https://www.haaretz.com/israel-news/business/riding-the-brexit-wave-an-israeli-just-bought-1-200-london-apartments-in-cash-1.6759335

Riding the Brexit Wave: An Israeli Just Bought 1,200 London Apartments – in Cash 

As a result of Brexit and the pound's drop, many developers have stopped building new projects, forcing them to sell under pressure

(thanks to jon2b

[PeanutButter]

Discussed here https://www.housepricecrash.co.uk/forum/index.php?/topic/233760-foreign-landlords-leave-uk-over-taxes-and-weak-pound/&page=1

[simvastatin]

1 minute ago, PeanutButter said:

Discussed here https://www.housepricecrash.co.uk/forum/index.php?/topic/233760-foreign-landlords-leave-uk-over-taxes-and-weak-pound/&page=1

Yep, but I think it needs it own thread to show where the big money is going 

[longgone]

416,000 for 1 bed flats each ?

[simvastatin]

13 minutes ago, longgone said:

416,000 for 1 bed flats each ?

Got mega discount.

if the money men are investing in London what do we oiks know

 

[Tes Tickle]

People with money are just as capable as anyone else of making a bad decision, look at Donald Trump as a good example - he's lost money on almost every decision he's made.

His Scottish golf course for example...

https://www.independent.co.uk/news/world/americas/us-politics/trump-organisation-turnberry-golf-course-losses-45-million-scotland-a8569936.html

President Donald Trump's Turnberry golf course in Scotland – one of his largest investments and the site of a presidential visit this summer – lost $4.5m (£3.5m) in 2017, its fourth consecutive year in the red.

In fact loaded people may be more likely to make bad decisions as they don't have to get approval from anyone and have probably convinced themselves that they're a genius.

[Tes Tickle]

An interesting point about exchange rates though, houses have already dropped by a big chunk for foreign investors so perhaps a nominal drop in the £ price isn't even needed now?

I reckon he's jumping the gun though, the £ may drop lots more before it recovers regardless of house prices.

[longgone]

34 minutes ago, prozac said:

Got mega discount.

if the money men are investing in London what do we oiks know

 

i have not accounted for the drop in sterling 500m / 1200 is £416k a unit. probably closer to 300k each when you work out sterling loss. 

They are taking a long term view on prices obviously still not amazingly cheap though unless they are all in zone 1 with 999 year leases. 

[Gribble]

30 minutes ago, Tes Tickle said:

An interesting point about exchange rates though, houses have already dropped by a big chunk for foreign investors so perhaps a nominal drop in the £ price isn't even needed now?

I reckon he's jumping the gun though, the £ may drop lots more before it recovers regardless of house prices.

No no no  - why do people still spout this drivel?

Buying UK property does not give residency rights. 

So foreigners including EU citizens after Brexit , can only buy houses as investments. A low £ means also low rental income. Yields remain the same.

So the only reason a foreign investor would buy UK houses is if he thinks £ will go up or house prices will go up. Both highly unlikely,

[simvastatin]

9 minutes ago, Gribble said:

No no no  - why do people still spout this drivel?

Buying UK property does not give residency rights. 

So foreigners including EU citizens after Brexit , can only buy houses as investments. A low £ means also low rental income. Yields remain the same.

So the only reason a foreign investor would buy UK houses is if he thinks £ will go up or house prices will go up. Both highly unlikely,

We are an honest country, we thrush out our problems in the open, a lot of countries also have problems that their media hide

we have a lot going for ourselves, at the same time our standard of living will be going down, but we will not have the yellow vests on our streets

i think he probably got a 30% discount 

 

[Tes Tickle]

1 hour ago, Gribble said:

No no no  - why do people still spout this drivel?

Buying UK property does not give residency rights.

Drivel?  Nobody said anything about residency until you did!?!  Spout away if you like!

All I'm saying is that, to someone whose money isn't in GBP the price of UK property has already dropped, by lots.

He's clearly of the opinion that the price of property in £s isn't going to drop by more than the value of those £s is going to rise by.  I'm not sure, but it's an interesting dimension that I hadn't considered the consequences of - that the GBP falling could, via inward investment, support house prices.

In this scenario a house price crash would happen, but only for people whose money is outside of the UK.

[Si1]

If unleveraged this may just be a sensible value-oriented long term investment.

I'd have thought the more sensibly located London apartments would have their rents partly dictated by international rates and international incomes rather domestic ones and so a falling pound might have little influence on the overall value. All a bit of a semi educated guess.

This person may make an excellent landlord.

Edited December 19, 2018 by Si1

[simvastatin]

6 minutes ago, Si1 said:

If unleveraged this may just be a sensible value-oriented long term investment.

I'd have thought the more sensibly located London apartments would have their rents partly dictated by international rates and international incomes rather domestic ones and so a falling pound might have little influence on the overall value. All a bit of a semi educated guess.

This person may make an excellent landlord.

.....and due to his heritage would have excellent knowledge about the property industry 

the long term 

[Si1]

2 minutes ago, prozac said:

.....and due to his heritage would have excellent knowledge about the property industry 

the long term 

For him/her, so what if the market bottom another 30% down. That might be in 3 years, during which time he could be taking dividends on these flats. And he's presumably in cash now earning nothing.

[simvastatin]

3 minutes ago, Si1 said:

For him/her, so what if the market bottom another 30% down. That might be in 3 years, during which time he could be taking dividends on these flats. And he's presumably in cash now earning nothing.

He seems like a very smart person, let be honest no one can call the bottom of the market 

and as the saying from Hillel goes.

’if not now when’

[lombardo]

10 minutes ago, Si1 said:

For him/her, so what if the market bottom another 30% down. That might be in 3 years, during which time he could be taking dividends on these flats. And he's presumably in cash now earning nothing.

I bet he isn't expecting a 30% drop. He bought near the top. He could have waited a couple of years.

[simvastatin]

8 minutes ago, lombardo said:

I bet he isn't expecting a 30% drop. He bought near the top. He could have waited a couple of years.

When you are playing monopoly the best pieces do not always come up when you have money in the bank, I bet he made the right decision 

[Si1]

26 minutes ago, lombardo said:

I bet he isn't expecting a 30% drop. He bought near the top. He could have waited a couple of years.

I thought he already got a big discount off peak??

[lombardo]

12 minutes ago, prozac said:

When you are playing monopoly the best pieces do not always come up when you have money in the bank, I bet he made the right decision 

How does he suffer if he kept the money in the bank for 2-3 more years? I bet this guy reckons he has bought near the bottom. He bought an assest that cannot rise much in real terms at all. Yes he might make nominal gains in 25 years time, but how much is that in real terms? Even his timing shows that he thinks it's about Brexit and not rates. The only benefit of buying now is that he has a guaranteed supply which may not have been there in the future.

Some posts on here go against everything this forum stands for. Being Jewish doesn't make him right. They too make stupid decisions like everyone else. If Fergus Wilson made that purchase you would all be mocking him. Or if some rich Chinese or Arab guy made it you would do the same.

[simvastatin]

Just now, lombardo said:

How does he suffer if he kept the money in the bank for 2-3 more years? I bet this guy reckons he has bought near the bottom. He bought an assest that cannot rise much in real terms at all. Yes he might make nominal gains in 25 years time, but how much is that in real terms? Even his timing shows that he thinks it's about Brexit and not rates. The only benefit of buying now is that he has a guaranteed supply which may not have been there in the future.

Some posts on here go against everything this forum stands for. Being Jewish doesn't make him right. They too make stupid decisions like everyone else. If Fergus Wilson made that purchase you would all be mocking him. Or if some rich Chinese or Arab guy made it you would do the same.

He is more intelligent than me and you for having that amount of money in the first place.

[chronyx]

3 minutes ago, prozac said:

He is more intelligent than me and you for having that amount of money in the first place.

Well that's utter horseshit but of course you know that already

[lombardo]

8 minutes ago, Si1 said:

I thought he already got a big discount off peak??

I am going to eat humble pie and take back what I said. I read the discount figure incorrectly. If he is getting 30% off right now then it might not be a bad deal. But it all depends on what the average discount was, since the article says "discounts up to 30%".

[Si1]

4 minutes ago, lombardo said:

I am going to eat humble pie and take back what I said. I read the discount figure incorrectly. If he is getting 30% off right now then it might not be a bad deal. But it all depends on what the average discount was, since the article says "discounts up to 30%".

Fair play

[Pebbles]

11 minutes ago, lombardo said:

How does he suffer if he kept the money in the bank for 2-3 more years? I bet this guy reckons he has bought near the bottom. He bought an assest that cannot rise much in real terms at all. Yes he might make nominal gains in 25 years time, but how much is that in real terms? Even his timing shows that he thinks it's about Brexit and not rates. The only benefit of buying now is that he has a guaranteed supply which may not have been there in the future.

Some posts on here go against everything this forum stands for. Being Jewish doesn't make him right. They too make stupid decisions like everyone else. If Fergus Wilson made that purchase you would all be mocking him. Or if some rich Chinese or Arab guy made it you would do the same.

This forum has no opinion there are a variety of opinions and viewpoints (or at least that was what i was told when house prices were rising post MMR and most people on here were predicting falls that year). I prefer to think of this forum as a discussion on house prices and this chap might well be right. If he gotten a big discount and is buying for cash so section 24 doesn't affect him and he is buying for the long term then i doubt he will lose massively whilst getting an asset that yields cash.

[Si1]

25 minutes ago, lombardo said:

How does he suffer if he kept the money in the bank for 2-3 more years?