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cheeseandbeans

Rich And Powerful People Keep On Buying Big Houses. What Gives?

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Big houses that sell for tens of millions keep on changing hands. I would expect that someone with a net worth in the hundreds of millions probably has better advice than we do. So what gives? Why are really rich movers and shakers investing huge sums of cash in homes to live in.

Do they know something we don't, or do they do know something that we don't?

Edited by cheeseandbeans

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Big houses that sell for tens of millions keep on changing hands. I would expect that someone with a net worth in the hundreds of millions probably has better advice than we do. So what gives? Why are really rich movers and shakers investing huge sums of cash in homes to live in.

Do we know something we don't, or do they do know something that we don't?

They're laundering it

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I don't know, but i'm constantly asked if I won the lottery what would I do with it...

Some people answer they we buy lots of properties and rent them out. I say I wouldn't do this. I'm asked would I buy my own house? I answer...

If these so called billionaires were investing in property, they would be buying hundreds of small houses not one big monstrosity in the countryside .

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They know that the price of houses at the very top end won't drop (or perhaps they don't realise but just don't care). Whether the BoE base rate or unemployment is 5% or 15% makes no difference in this segment of the market. For example the top end of the London market is truly global -super rich people from all over the world buy there, the price of a semi in Croydon has nothing to do with it whatsoever.

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That part of the housing market is completely seperate to the rest of it so no comparison should be drawn.

Often in areas such as Bishops Avenue in Hampstead, London (Millionaires Row basically) buyers will buy a multi-million pound property, demolish it and build to their own design. THEN NEVER LIVE THERE!!! It's a different world.

From Wikipedia - http://en.wikipedia.org/wiki/The_Bishop's_Avenue

"Property prices on the street sailed past the £1 million mark in the late 1980s. House prices now typically start from £8,000,000 ($14,730,000 USD), with no upper bound. Currently Turkish tycoon Halis Toprak's 30,000 sq ft home, styled around a Greek temple, is for sale for £50 million ($94 million USD), making it one of the most expensive houses in the world."

The house referred to above is utterly tasteless in decor.

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That part of the housing market is completely seperate to the rest of it so no comparison should be drawn.

Often in areas such as Bishops Avenue in Hampstead, London (Millionaires Row basically) buyers will buy a multi-million pound property, demolish it and build to their own design. THEN NEVER LIVE THERE!!! It's a different world.

From Wikipedia - http://en.wikipedia.org/wiki/The_Bishop's_Avenue

"Property prices on the street sailed past the £1 million mark in the late 1980s. House prices now typically start from £8,000,000 ($14,730,000 USD), with no upper bound. Currently Turkish tycoon Halis Toprak's 30,000 sq ft home, styled around a Greek temple, is for sale for £50 million ($94 million USD), making it one of the most expensive houses in the world."

The house referred to above is utterly tasteless in decor.

Would it be fair to say that these properties are in Council Tax D or maybe E.

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Big houses that sell for tens of millions keep on changing hands. I would expect that someone with a net worth in the hundreds of millions probably has better advice than we do. So what gives? Why are really rich movers and shakers investing huge sums of cash in homes to live in.

Do they know something we don't, or do they do know something that we don't?

It is probably Russians and people from other countries trying to put thier money beyond their governments reach. The money used could be legal or illegal, in a lot of countries what is legal is changed pretty often and retrospectively.

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I reckon that people at that level of wealth no longer have to care about the future value of the land & property they buy. It's just a posturing game to show who is the richest and most extravegant; and not an investment. Got to have something to blag about at the golf club.

Of course they will stop doing it as soon as economic conditions change and they feel their wealth is threatened, but in the meantime I think it's nice that there is still one area of the market where a house is consider a consumable item and not an investment :P

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It's also about value for money. The threshold at which you personally start to feel ripped off is set by your wealth.

If you only have a £10 to your name, you might feel ripped off in a London bar at £3.50 a pint.

If you have £1 billion, a mill here or there probably doesn't bother you.

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For some reason the title seems to be different to the one listed on Newsnow.

http://www.telegraph.co.uk/news/main.jhtml...9/02/ntax02.xml

Dirty money darkens Britain's reputation Telegraph.co.uk 02:09

Tax havens 'put Britain high on list of corrupt countries'

By Charles Clover

(Filed: 02/09/2006)

Britain is high on a list of the world's most corrupt countries, along with the United States and Switzerland, because of the refuge it offers to dirty money in tax havens such as the Channel Isles and the Isle of Man, researchers said yesterday.

Britain deserves inclusion high on any list of corrupt countries because of its "pinstripe infrastructure" of financial advisers squirrelling away money offshore and because of its reluctance to close down its tax havens, the Royal Geographical Society's annual conference was told.

Calling for the abolition of tax havens he said: "You cannot move money in the quantity that has been moved out of Russia without using the western banking network and they are all deeply implicated in the process."

.....

Instead of going after the corrupt super-rich, the Chancellor had placed the burden of taxation on people of middle and lower incomes.

.....

Prem Sikka, a professor of accounting at Essex University, accused Mr Brown of losing an estimated

£97-150 billion a year to organised tax avoidance by large corporations because he was reluctant to tackle the trans-frontier transfer of money, at preferential rates, between large corporations.

Edited by OnlyMe

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Big houses that sell for tens of millions keep on changing hands. I would expect that someone with a net worth in the hundreds of millions probably has better advice than we do. So what gives? Why are really rich movers and shakers investing huge sums of cash in homes to live in.

Do they know something we don't, or do they do know something that we don't?

The idea of a (long term) property shortage in the UK is fallacy. In terms of room occupancy we are better off than most of Europe. Only sentiment has driven prices this far. Why would a person worth hundreds of millions have access to better advice on sentiment?

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For those buying as a main residence the Tax attraction is significant - there is'nt any.

Ive lately been thinking about selling all my investments and taking out a massive mortgage in order to get the most expensive home I can. Any growth is Tax free. To release the value in retirement one could always use an equity release scheme (charged @7% until death) to provide a significant Tax free lump sum. Alternatively sell - up and move down - market to release Tax free equity.

No wonder the Brits dont have Pansions!

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For those buying as a main residence the Tax attraction is significant - there is'nt any.

Ive lately been thinking about selling all my investments and taking out a massive mortgage in order to get the most expensive home I can. Any growth is Tax free. To release the value in retirement one could always use an equity release scheme (charged @7% until death) to provide a significant Tax free lump sum. Alternatively sell - up and move down - market to release Tax free equity.

No wonder the Brits dont have Pansions!

I imagine you are joking, but in case you are seriously considering this. A friend of mine has an 8 bed family house with gardens and reckons it costs 30k p.a to maintain - before any major renovative building works. So make sure you have plenty of cash to hand ;)

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  • 301 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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