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Foreign Investors Buy 40% Of Central London Property

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Read in the Easyjet magazine yesterday that in 2005, 40% of central london property (I assume residential) was bought by foreign investors. The investors were mostly from Europe, Russia, the far and middle east.

With plutocrats billions pouring into London, will central London be affected even if the country slides into recession?

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Yes - with money in many cases (as per Abramovich) stolen from the Russian people. The sooner President Putin locks them all up the better.

I for one wouldn't want to work in Kensington & Chelsea Council's planning department these days - especially if you made the mistake of turning down one of their requests for an extension haha!

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Guest Winners and Losers

London has been renamed 'Londongrad'

DUST off your bling and your Dolce and Gabbana: the Russians are coming to London -- and they are bringing their roubles.

London hosts the Russian Economic Forum this week, a conference that brings top-level newsmakers from Moscow and attracts serious investor attention.

But the yearly event has long been upstaged by its parallel fashion and shopping extravaganza, as some of the planet`s nouveaux-richest people -- with their spectacularly skinny wives and equally fat wallets -- descend on the British capital.

It kicked off this year ahead of the conference with a red carpet party and catwalk show of Russian fashion designers at London`s stately Victoria and Albert museum on Friday night.

Outside the Bentleys were parked on the pavement and the paparazzi snapping away. Inside, a bi-lingual it-crowd in haut couture sipped honey-vodka cocktails and champagne.

Luxury retailers are salivating.

"They do not balk at wearing silk, fur, cashmere and shiny finished clothes. They can happily wear a three-quarter length full leather coat with fur collar, for instance," said Bruno Barba of upscale London department store Selfridges.

As for the women, they will be jetting back to Moscow with their "favourite brands by far" -- Dolce and Gabbana, Roberto Cavalli and Missoni -- and "expensive, showy pieces from our jewellery counters".

"Bling is definitely a trend they are sensitive to," he added.

Years after they first started snapping up town houses in London`s Mayfair district and sending their children to fancy private schools in the English countryside, Russia`s post-Soviet millionaires are no longer exotic sights in the UK.

Britain`s second richest man is the young Russian billionaire Roman Abramovich, who turned up a few years ago and bought the ultimate London souvenir -- Chelsea Football Club.

Banker Alexander Smolensky has since bought the TVR sports car factory in Blackpool for his twenty-something son Nikolai.

And increasingly Russians have become known in London for glamour as well as wealth, not least since six-foot-two-inch (1.88 metre) blonde Maria Sharapova won Wimbledon in 2004, instantly becoming as famous for her legs as for her serve.

http://www.redsquarepr.com/content/view/19/60/

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Most of them should probably be arrested. Damn Blair for encouraging these scum into the UK.

I guess that a large % of the population of London would be classed as foreign - and if they invest - foreign investors?

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Read in the Easyjet magazine yesterday that in 2005, 40% of central london property (I assume residential) was bought by foreign investors. The investors were mostly from Europe, Russia, the far and middle east.

With plutocrats billions pouring into London, will central London be affected even if the country slides into recession?

Is this a change from the situation a few years ago? I.e. is it unusual, and evidence that anything has changed.

Will these "foreign investors" start buying newbuild flats in Grimbsy to keep the property market in the rest of the country afloat?

Billy Shears

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Surely it's only a matter of time before the whole of UK PLC is up for sale to the highest bidder.

China, lets sell the whole country and get us out of debt. We can lease it back on the never, never!.

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Will these "foreign investors" start buying newbuild flats in Grimbsy to keep the property market in the rest of the country afloat?

Simply buying up flats does not keep prices up in the long run. It is the ability to find tennents that counts, and there is only a certain supply. The idea that mass Eastern European immigration can keep prices up is also probably a dodgy idea. Most of these immigrants will only be doing jobs that Britons would otherwise do. They are taking money out of the system rather than injecting it in. Buying houses is not the same as printing money.

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I have no problem with anyone from anywhere in the world wanting to live in London. But maybe there should be measures taken to ensure that every property is never eventually owned by a foreigner. By foreigner I mean someone living abroad.

A measure could be that they cannot buy until they have been a resident for a minimum length of time, say 5 years or have gained British residency. Otherwise, if they buy a property that is usually freehold, it should be leased off of the freeholder (vendor) until they do reside in the UK for 5 years.

Wishful thinking I know but don't they have a policy in Dubai whereby those buying property there, that do not have Dubai citizenship, can never actually own property. They can only lease?

I think the government should do something soon, and this is a problem for other countries too where expats are taking over large parts of European countries with cheaper property.

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A measure could be that they cannot buy until they have been a resident for a minimum length of time, say 5 years or have gained British residency. Otherwise, if they buy a property that is usually freehold, it should be leased off of the freeholder (vendor) until they do reside in the UK for 5 years.

Wishful thinking I know but don't they have a policy in Dubai whereby those buying property there, that do not have Dubai citizenship, can never actually own property. They can only lease?

IN that case people will buy by proxy..

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Most of them should probably be arrested. Damn Blair for encouraging these scum into the UK.

I guess that a large % of the population of London would be classed as foreign - and if they invest - foreign investors?

Whenever I see Abramovich I think 'Where are the bodies buried'?

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Whenever I see Abramovich I think 'Where are the bodies buried'?

I don't remember ever being asked whether I wanted all these tall blonde Russians coming here and imposing their culture on us.

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You've seen the movies where the counterfeiters flog funny money 10:1 for real money, right? That's exactly what is happening wrt the Russians with their funny roubles and London property.

If Putin wakes up on the wrong side of the bed and decides some grace-and-favours-enriched sycophant is really colluding against him, or if he decides some mobster-oligarch has political ambitions that would see him out of a job or behind bars, he could, in an instant, freeze that plutocrats assets and put out a warrant for their arrest. In such circumstances, the sensible thing for said plutocrat to do is to set up a base in a country with strong extradition laws and a big(gish) military and the biggest friends (US) : ie the UK.

By buying assets in the UK they are turning what amounts to funny-money into real wealth. When you look at it that way, there is probably no limit on what they are prepared to pay. Having said that, one has to wonder whether th emoney has been subject to the stringent anti-laundering procedures UK nationals face... me thinks not.

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I've always thought if the government could raise a lot of money to pay for ID cards if it sells off the Isle of Wight to any country who bids the most.

It could sell cornwall to pay for extra National Heath Service money. It could sell Surrey to increase the military budget to pay for the Iraq war. It could sell each other country to raise money for the exchequer. By the time it finishes selling off all the counties it won't have to budget for anything anymore because their will not be an England.

Edited by Padiham

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Hi all.

I read this post in its entirety and felt like no one has actually answered the question.

Lots of people are saying these days that prices in central London (and surrounding boroughs) will NEVER drop, because of forigen invesment and growing demand vs dwindling supply.

What's your take on it?

Cheers.

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I've always thought if the government could raise a lot of money to pay for ID cards if it sells off the Isle of Wight to any country who bids the most.

It could sell cornwall to pay for extra National Heath Service money. It could sell Surrey to increase the military budget to pay for the Iraq war. It could sell each other country to raise money for the exchequer. By the time it finishes selling off all the counties it won't have to budget for anything anymore because their will not be an England.

Could the country just MEW the equity out of the IoW? And when the price goes up as it inevitably will because they aren't makeing islands any more (except for a few in Iceland) then the government can MEW again. If they did this for a number of offshore islands, they might be able to get a permanent supply of money so that we can all live like kings without having to lift a finger.

Billy Shears

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IN that case people will buy by proxy..

Make that a crime with a punishment sufficiently harsh to be a deterant.

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  • 302 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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