What is happening abroad affects the average British at home – in particular, the price of the homes they want to buy. Blame the stability of the British economy.
For many years it has been well documented that wealthy Russians, Chinese, Saudis and others outside the UK are buying hot real estate in London. It has already spread to other cities in England. As a result of the May 2015 elections, coupled with continued volatility abroad, this trend may not reverse for some time.
It affects ordinary citizens of Britain. Part of the rise in property costs across London is the extreme degree to which the most expensive homes in central London are sold to foreigners, as almost all of them search for safe and stable shelter for money. In September 2014, The Telegraph reported that 20% of buyers in Westminster, Kensington, and London were sold to people in Russia, Italy, France, and the Middle East. Among the best neighborhoods favored by foreign buyers were Camden, Islington, Hammersmith and Fulham.
The craziest thing for residents of Great Britain is that 60,000 of these homes in London remain vacant. Some of these buyers actually live here because they own these assets as financial assets. A real estate agent told The Telegraph that some developers are building at particularly high luxury levels to attract these buyers. The average price of Prime Property in central London was 4.7 million pounds by mid-2014.
In England and Wales on the city side and elsewhere at average price levels, developers are building affordable middle-class homes. This helps bridge the yawning gap from a UK housing shortage, especially when startups outside London have homes that families need. The Daily Mail reported in October 2014, “Some Chinese buyers who can pay in cash visit the northern cities to find investment opportunities. Experts fear that this trend is forcing ordinary family prices, I will do it.”
In the May elections, the Labor Party spoke of a palace tax, which could reduce foreign interest in buying in Britain. But with the loss of this party, the idea of this type of tax was also popular. Real estate agents working with foreign buyers had reported the election results, and on the same night there was an immediate rise in interest.
Global events play a role. Sanctions against Russia have had implications for its aggressive tactics in Crimea and Ukraine. International sanctions against the state in 2014 defied the ruble, which made these buyers more expensive for the oligarchy and the “moderate rich”, marginalized, would withdraw their purchases.
However, many argue that it should be in a commercial property or residential development rather than an expired residue. The Cameroon government will undoubtedly grapple with this question in the coming years.
Investors need to think about the asset classes appropriate for their strategies and overall wealth goals. The most objective advice can be found with the independent financial advisors.
For example, strategic land developers define lands that could obtain approval for a plan to convert residential properties. Investing in real estate like land and real estate is not new to Britain
Jun 21, 2020
Jun 21, 2020