Sunday, January 13, 2008
London: Kiss the Russian oligarch good bye
Investors bale out of Britain
Foreigners are rich (and now richer thank to the strong euro) but are not stupid. For foreign investors London houses have lost 10% of their "home currency" value in 2007. Expect no more demand from Euroland and the Oil Countries. "SOME of the City’s top professionals are betting that sterling will slide this year, making Britain one of the least attractive world markets in 2008 and throwing up better opportunities overseas."
Posted by confused76 @ 01:21 PM (974 views)
7 thoughts on “London: Kiss the Russian oligarch good bye”
Add a comment
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
new_order says:
This is VERY VERY serious. If the Gods leave Olympus the kingdom will fall.
Almost all of the UK’s domestic wealth is in the midlands, north and Scotland. The south east is propped up mostly by foreign money.
alan says:
It’s not just Britain. The German Sunday press are suggesting UBS (biggest Swiss bank) will take another big Sub-Prime hit next week. Estimates are around $5bn.
Last time it was Singapore that bailed them out…..
Camping says:
Dont worry , they are not going anywhere, uk tax breaks for the gods are godlike! However their money might move eastwards, emergingly as uk is bought out by the east.
mrmickey says:
Will all our Polish plumbers decide it’s time to head back home now their Sterling pay packets are looking thinner and thinner once converted back to euros and sent back home to mum & dad.
harold says:
“Will all our Polish plumbers decide it’s time to head back home now their Sterling pay packets are looking thinner and thinner once converted back to euros and sent back home to mum & dad.”
Sure they will. So much for the immigration “problem”.
japanese uncle says:
An economy that saw the first bank run in 140 years, and the second one may be around the corner.
Certainly not quite encouraging environment for any foreign investors, is it? But probably the top players in the City may well be thinking;
“Who cares? I have already saved multi-millions in my bank, by exploiting the dumb both in and outside the UK. Now I can retire into a life of comfort in Davon. Fishing and golfing 365 days. Hahaha.”
confused76 says:
The run on the pound has definitely started. Look at the accelerating weekly drops vs eur and usd.
Foreign investors will wait for the UK down cycle to bottom first. In terms of absolute numbers, the oligarchs Camper is referring to are the absolute minority of residents. London property prices are sustained by the “BTLetters formerly known as my plumber” type and the middle ranking city folks on 200k fixed and 300k bonus. Job security in the city is very low now. Nothing to do with taxes… many non doms are now packing to go home, depressing rentals too. BTLetters are not covering interest payments with the rent. Foreign fools who must boast about their Chelsea pied a terre are deterred by the declining pound (and becoming the village fools back home)
I read a stupidest comment of a Times reader, that falling pound makes London houses cheap. Turkey! If I am a foreign BTL my rental yield will be pound-based as well. So every further depreciation of the currency would dent both my yield and my capital gains based on the initial home currency investment.