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 Post subject: London's real estate and finance
PostPosted: Mon May 09, 2016 3:46 pm 
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More data for Eubanana...

I posted it in this thread in order to avoid hijacking the previous one

From http://www.theguardian.com/world/2016/m ... ama-papers

Quote:
The central role played by British overseas territories in London’s property market has been revealed in a new analysis of illicit global money flows published on the eve of the summit. Nearly three out of four properties in London sold to overseas companies between 1999 and 2014 were registered in the UK overseas territories and crown dependencies, where beneficial ownership need not be disclosed.

The average price of properties purchased by those companies stands at £5.6m and is 33 times greater than the average in England and Wales in 2014. The flow of foreign money into London has been pinpointed as a key reason for spiralling house prices in the capital, where the average is now more than £500,000

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 Post subject: Re: London's real estate and finance
PostPosted: Mon May 09, 2016 4:08 pm 
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pamak wrote:
More data for Eubanana...

I posted it in this thread in order to avoid hijacking the previous one

From http://www.theguardian.com/world/2016/m ... ama-papers

Quote:
The central role played by British overseas territories in London’s property market has been revealed in a new analysis of illicit global money flows published on the eve of the summit. Nearly three out of four properties in London sold to overseas companies between 1999 and 2014 were registered in the UK overseas territories and crown dependencies, where beneficial ownership need not be disclosed.

The average price of properties purchased by those companies stands at £5.6m and is 33 times greater than the average in England and Wales in 2014. The flow of foreign money into London has been pinpointed as a key reason for spiralling house prices in the capital, where the average is now more than £500,000

The real estate prices will plummet after the new Londonbad caliph declares Sharia law and bans all alcohol. :lol:

Especially Russians will flee in droves. Chelsea will lose financing... :(

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 Post subject: Re: London's real estate and finance
PostPosted: Mon May 09, 2016 4:18 pm 
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And here is one study linking global finance to London's property market: It was prepared for the city of London corporation and city property association


http://www.cityoflondon.gov.uk/business ... -flows.pdf

some quotes

Quote:
London’s position as the top global financial centre1 is intrinsically linked with its real estate. Investors are attracted by this and the resultant high quality income streams. London, especially the City, can add quality buildings within a relatively relaxed planning regime with permeable market boundaries.


Quote:
London has captured a disproportionate share of global capital. In the last three years 65% of the Central London office market was purchased by overseas investors while the UK has been a net disinvestor in nine of the last 10 years. Buyers in 2011 came from 30 countries. A £100 million City core lot in the 1990s would have attracted, say, 5-10 viewings. Now it could be more than 25. Market practitioners have never witnessed such a varied base and new entrants seem to be emerging constantly; there has been no historical precedent.


After talking about the commercial real estate, it continues with the residential

Quote:
Many high net worth investors became familiar with London through residential investment before turning their attentions to commercial real estate. With increased debt from the mid-1990s UK house builders provided a development market that enabled off-plan sales. This appealed to the South East Asian market, familiar with such investment, and also enabled accommodation to be purchased, in advance, for relatives to live in during their time in education. Such off plan investment enabled more development in turn as funding risk was underwritten. The crash of 2007 and 2008 ended what was essentially a 15 year bull market, but those who didn’t have to sell held. With no second hand market and little new development, prices increased quickly and this prompted a swift, and more aggressive, return of overseas capital, particularly focussed on Central “zone 1”areas. Asian investors purchased a staggering 47% of all the London apartments sold in 2010


back to you Eubanana....

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 Post subject: Re: London's real estate and finance
PostPosted: Mon May 09, 2016 10:54 pm 
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We know Muslims need not worry about high rent, but how do racist white devils manage to stay off the street?

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 Post subject: Re: London's real estate and finance
PostPosted: Tue May 10, 2016 9:18 am 
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Fucks sake not this shit again. You're wrong, it's that simple. I can't be arsed to go over it all again. You are an ideologue who came up with a conclusion before he examined the evidence.

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House prices correlate closely with total mortgage lending. Duh. Everything is worth what the purchaser will pay for it, and when the purchaser routinely borrows to pay for it, everything is worth what the purchaser can borrow. If house prices were driving by Chinese capitalists and Saudi oil sheikhs then domestic lending would be irrelevant to the big picture and clearly it isn't - they are at best a contributory factor (as is migration). Loose lending causes asset bubbles. If there were no mortgages tomorrow house prices would crash, because nobody would have the loans to enter the market, and distressed sellers would have to eat a big loss.

The effect of planning is also abundantly clear. No spike in building despite this gigantic infusion of cash. In Ireland and in Spain there are ghost towns full of derelict houses, some of which are half built. No oversupply in the UK.

I can't even believe I'm saying this yet again, this is not contentious stuff. I'm done anyway, believe what you will, not gonna bother repeating myself for the sixth time or reading some other "No, no, look here, it really was my pet nemesis all along!". It's a waste of my brain juice. Give it a rest, open your mind. Or don't. I don't care.

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 Post subject: Re: London's real estate and finance
PostPosted: Tue May 10, 2016 9:58 am 
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Foreign purchasers can affect real estate locally but they tend to be trophy properties.

Columbians and Russians buying up luxury high rise condos in Miami. Hong Kongers in Victoria..but they don't generally affect the entire market....and they are typically cash deals.

If there is any doubt about EU's position one need only drive from central London to Gatwick. It's only 29 miles and half the time you see nothing but trees.

Even so I do see the preservationists position. You dig into a parking lot and there is freaking Richard III :lol: Around here the oldest thing is the San Juan Capistrano Mission (300 years mostly adobe). If they are putting in a sprinkler system and they dig up a Junaneno Indian coprolite they stop all construction and bring in the coprolitologists.

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 Post subject: Re: London's real estate and finance
PostPosted: Tue May 10, 2016 4:02 pm 
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Quote:
House prices correlate closely with total mortgage lending. Duh. Everything is worth what the purchaser will pay for it, and when the purchaser routinely borrows to pay for it, everything is worth what the purchaser can borrow. If house prices were driving by Chinese capitalists and Saudi oil sheikhs then domestic lending would be irrelevant to the big picture and clearly it isn't



The only ideologue is you! I gave you another source from hardcore capitalists talking explicitly about the effect of wealthy foreigners on London's real estate market. You come back with idiotic arguments:


First, nobody said that wealthy foreigners was the only reason for high market prices. Their presence simply explains why London is the most expensive market in the world. And yes, as the study shows, this can be explained by the fact that London is the most attractive destination for all these wealthy foreigners

Second, your graph is about the whole UK. The effect we are talking about is in London. So, your graph is totally irrelevant

Third, the explanation about tough regulations and loans to explain high prices fails in the light of all the available evidence:
For start , according to your saying in the previous thread, there was not a collapse of housing prices in London, and you tried to explain it as a result of government regulations. So, if I am not mistaken you basically claimed that lending WAS irrelevant to the big picture in London. Are you going to change once more your theories? If you are willing to do so, perhaps you should consider the possibility that lending was irrelevant not because of the government regulations (after all the UK government is one of the most subservient ones to the modern bank practices) but because of the presence of wealthy investors. In other words, the average people could not get a loan or build a house he could not afford thanks to competition by wealthy foreigners. I gave you a similar case in San Francisco with house prices going through the roof and with people unable to get a house without paying in cash!!!. Moreover, considering that according to the study, HALF of the apartment purchases went to foreign investors, it is idiotic to argue that the driving factor in London is the loan given to the average Londoner to buy a house.

Nor does it make sense to explain the price level based on decades old government regulations which make it difficult to build a house. Have you realized that London has become more expensive than places like Manhattan? How many new buildings were built in Manhattan during the last 20 years? Obviously, it is almost impossible to build in Manhattan, not because of regulations but because of its geography and lack of space in the island. And still, your city has become less affordable for its people regarding housing than fucking Manhattan! But I guess, this must have been expected as long as there are gullible people like you ready to bend over to what the big finance dictates.

Your fanatical resistance to accept the real information and theory I provide to you from credible sites regarding the effects of wealthy investors on the housing market of London is telling about who the ideologue is. You have the nerve to claim that I formed an opinion before examining the facts when it is obvious that you are reluctant to change the opinion you have formed about London's housing even AFTER you were provided the relevant facts as they are given by professionals in the field of the London real estate market. You started the conversation with a very strong rejection of the effect of foreign investors on house prices (in your words, it was "BS!") and you continue to believe the same thing...

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 Post subject: Re: London's real estate and finance
PostPosted: Tue May 10, 2016 4:45 pm 
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Quote:
Foreign purchasers can affect real estate locally but they tend to be trophy properties.


When 50% of the whole apartment sales in London went to foreign investors, it is obvious that we are not talking only about some high end trophy properties. The thing is that in most cases these investors do not buy these properties to live in, so it does not have to be a "trophy" property. Most of the times, they just want to invest cash in a market they see as having a very high return. Of course, there are also trophy properties used for personal reasons, but the majority of the cases is about average properties used as an investment.

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 Post subject: Re: London's real estate and finance
PostPosted: Wed May 11, 2016 9:49 am 
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I'm not worried. Imagine what the Queen could make sub-letting flats at Buckingham Palace. Or maybe just convert to condos? A workout room. Indoor pool. Underground parking. Call it, "Buckingham Palace Estates"



London is a wonderful city with millennia of history and national character. All England should be proud the Sheik of Arabia likes the place.




Will the last Englishman out please take the flag. :)

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 Post subject: Re: London's real estate and finance
PostPosted: Wed May 11, 2016 7:06 pm 
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More information

www.property-report.com/foreign-territory/

Quote:
Unstoppable foreign investors are the real drivers of London property

Overseas investors – not Brits – are fuelling the British capital’s real estate boom

By Stuart Farquhar

For centuries, London has been the seat of kings and queens. Since Alfred the Great settled there in 886 AD, royalty has owned some of the city’s most iconic buildings, their grandeur symbolising the wealth and power of a thriving and influential kingdom. Today, it’s much the same – with one striking difference: most of London is owned not by the British crown, but by the Qatari royal family.

The startling fact that so many London properties are now owned by the Qataris resonates with a wider trend. At all levels of the London property market, international investors are moving in.

Research by global real estate consultant Knight Frank found that from mid-2011 to mid-2013, non-UK nationals made 69 percent of prime central new-build purchases in London, while non-UK residents made 49 percent. More recently, the firm found that between July 2014 and July 2015, some 63 percent of buyers of homes worth more than GBP10 million (USD15 million) were non-British.

Rich foreigners buying properties in London is nothing new – “one thinks of the Huguenots,” said Jeremy Raj, property partner at London law firm Wedlake Bell – but things have really taken off in modern times. “In terms of buying properties off-plan in the buy-to-let market, a significant percentage of the market was being snapped up by Hong Kong investors throughout the 1990s and beyond.”

But ironically, the real boom in foreign investment owes much to the bust of 2008. “Initially, following the financial crisis, the prime central London market stopped dead in its tracks,” explained Cornelius Medvei, real estate partner at global law firm King & Wood Mallesons.

“Then a number of foreign investors, looking for a safe place to put their money, realised the arbitrage potential of buying prime residential property in a depressed – or at least uncertain – market at prices discounted by the fall in value of sterling.”

That cash surge boosted prices. “The growing importance of private wealth in the residential sector, focused on safe-haven locations, has driven demand,” added Medvei.

More: Higher property taxes may deter foreign buyers in London

The safety factor is key to London’s popularity, especially among Russian and Middle Eastern buyers. Knight Frank’s 2015 Super Prime London Insight research notes that, between 2014 and 2015, “the number of Middle East buyers rose to 16 percent from 11 percent on the back of geopolitical instability in the region.”

Geopolitics aside, London is seen as a safe haven in purely financial terms – especially after this year’s Conservative election win, which saw the possibility of a Labour-imposed “mansion tax” recede. “The attraction of London is unlikely to wane,” added Raj. “The preponderance of demand over supply – unlikely to be addressed any time soon – along with the relative security of sterling, makes the investment decision an easy one.”

And while Russian and Middle Eastern buyers have been in the spotlight with high-profile luxury purchases, Knight Frank highlights increasing Asian investment interest in new-build residential property, with buyers from Singapore and Hong Kong accounting for 40 percent of purchasers of new-build property in central London.

Overall, property deals in London netted the UK government GBP3 billion (USD4.56 billion) in stamp duty tax in 2014-15, but not everyone is happy with the city’s global investment appeal.

According to the Nationwide Building Society, the price of a typical home in the capital is more than GBP440,000 (USD681,500), which is double the UK average, with London prices rocketing by 10.6 percent between this July and October. One of the few things that Sadiq Khan and Zac Goldsmith – the respective Labour and Conservative candidates for the forthcoming London mayoral election in May 2016 – agree on is the assertion that many ordinary Londoners are being priced out of their own city.

While many factors drive up prices, Medvei believes foreign investment is a catalyst. “The driver of house-price growth has always been the relationship between three key variables: demographics, economics and availability of supply.

More: 4 awesome ways London could combat its housing problem

“Where demand comes from non-domestic buyers, all three variables are super-charged by wealth which is not dependent on the local economy; by demand which reflects an individual’s desire to invest their wealth safely; by supply which is limited by the volume of construction in prime locations.”

The ripple effect of foreign investors snapping up property in central London is being felt throughout the city, according to campaigners.

Dan Wilson Craw, policy manager at Generation Rent, which campaigns for affordable rented homes, said: “The sale of London property to foreign buyers is part of a wider culture of treating houses as investments instead of homes.

“Many developments in central and inner London are sold off-plan, denying families who are trying to buy a home but don’t have the means to pay for one while it is being built.

“Property values are rising so fast that some investors can afford to leave their assets empty, which helps none of the Londoners struggling to make ends meet. The UK and London governments should be ensuring that any new developments serve those who live and work in London as a priority.”

With recent street protests against gentrification turning violent, and the upcoming mayoral election being billed as a “referendum on housing,” the coming months will see foreign investment in London’s property market come under closer scrutiny than ever before.

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