Quote:
Originally Posted by Ignitionnet
I can't help but feel the strong vested interests that come with a £1.5 million property portfolio somewhat colour your views on this. I have no idea how much of that value is capital appreciation or, if you prefer, money for nothing, but if you're in the south-east it's unlikely to be trivial.
Getting serious about housing both inside and outside London, and cooling the investor market would likely impact both your rental income and capital gains. A pretty good reason to see nothing wrong with foreign or any other investment in properties that might keep their value excessive.
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As Osem said, I've been through two property bubbles so I'm looking at this with the long view. The only people who come unstuck if a bubble bursts are those who need to sell and are in negative equity.
I honestly don't care about foreign investment because it drives up some prices (good for me) and if there is a bubble and it bursts I sit it out. I don't need to sell. btw, most of the appreciation in my case has come from taking something that isn't liveable (so you can't get a normal mortgage on it), doing it up and then renting it out or using it myself. The property I just took on doesn't have a floor downstairs and hasn't been lived in for ten years. I'm doing the local community & council a favour. So whilst there is a vested interest on my part, it's not as strong as you think.......the only time I
will have an interest is when I finally
do want to sell.
The argument about buyers from Singapore seems to hinge on how they treat foreign investors over there.
Not sure what point is being made in the post about central London properties being out of the reach of normal buyers. Those properties attract a lot of stamp duty, the building industry gets paid a lot to build them, developers make a mint and pay tax on that and then can reinvest their profits in building other developments......money goes round and at each stage tax gets paid to the government....which is what you surely want
