Indulge in Life in America

Chapter 1692: London housing market crashing sooner or later

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"what?"

William and Sugar Grosvenor exclaimed at the same time.

This statement had to shock the two dukes. The London real estate collapse was absolutely a huge loss to them, because not only Grosvenor, William himself was also a small landlord, and a considerable part of the asset allocation in his hands was real estate. With real estate, once the price plummets, the loss can definitely be described as heavy.

Yang Cheng pressed his hand, "Don’t worry, in the long run, the housing market will definitely rise, but in the short term, I always feel that there will be a collapse. Just like the subprime mortgage crisis in the United States, this period cannot be predicted. Maybe two years and three years? Even five years and ten years are possible."

Hugh Grosvenor lowered his head thoughtfully, but William asked anxiously, "What's the reason? Did you get any news?"

Yang Cheng shook his head and pointed to Hugh Grosvenor, "Actually, people with discerning eyes have similar feelings. If you don’t believe me, ask Hugh, the skyrocketing of the entire London and even the UK real estate market in recent years is actually a Ponzi scheme. "

Xio smiled bitterly, "I also just took over the family business. The consultants in the company have similar arguments, but they are all suppressed by mainstream voices. Most people's eyes are focused on crazy profits, and they don't care about the future. risks of."

Yang Cheng shrugged, "This is what I want to say, don't think about it so much, what about a Ponzi scheme? What if the bubble bursts? We just need to hurry up and make money, and even if it collapses, follow us. It's ok.

That's why I emphasized that this project must be fast, complete the planning and design as soon as possible, complete the approval procedures as soon as possible, start construction as soon as possible, sell as soon as possible, and withdraw funds as soon as possible. There is only one point for the entire project-fast! "

William pressed his forehead, "Wait, I'm a little confused, can you tell me in more detail about this Ponzi scheme."

Hugh Grosvenor sighed, "If you calm down and think about it, you can understand that it is actually related to the buyer's motivation to buy a house. Once the purchase of a house loses its purpose of'living', although it appears in the form of building real estate, the house Has become a financial product in a broad sense.

Today, the average debt per capita in the UK reaches 8,000 pounds, which does not include mortgage repayments. Therefore, most British working-class people are unable to buy houses. This shows that there are many investors trying to speculate in this short-term.

For these buyers, capital has always flowed around the world. They may not focus on the structure, function, and age of the house. The most important thing is the room for appreciation. As long as the location is similar or the publicity is well done, They will invest large sums of cash in, which explains why London has the hottest real estate market. "

Yang Cheng said immediately, "This is the case, but the reason why hot money becomes hot money is because this money is only temporary and will not remain in the hands of investors forever. When the economy is cold, or certain policy factors cause it. The cash craze is gone, will they still care about the London property they had invested in before?

By then, the London real estate in their hands would be tasteless, neither was it vomiting nor vomiting, cash flow was not up, real estate transactions fell, and the collapse was only a moment away. "

The few hairs left on William's head were messed up in the wind.

"What do you mean by the Zheng policy factor?"

Yang Cheng exhaled fiercely, thinking of what the big mouth would do in the future, he wanted to give him a shot, no! Shoot for five minutes!

"Which place has the most hot money pouring into London?"

William and Hugh Grosvenor replied without thinking, "America!"

"Yes, the United States, think about it. Once the United States implements protectionist policies, such as tax cuts, trade protection, etc., the Fed will switch to the interest rate hike model, and the three-pronged approach. At that time, hot money fell cold and lost the value of currency. , The result is what I just said..."

William seemed to be hot, unbuttoning his shirt, feeling a bit dry in his throat, took a sip of tea and asked, "This is just a guess. Who can tell Zheng Ce?"

Yang Cheng laughed, "Well, even if we don't mention the impact of the Zheng policy, we can still draw conclusions based on the current situation in the UK.

The simplest set of data shows that the average age of first-born women at the Chelsea and Westminster regional hospitals in London has reached 37 years.

What caused it? Quite simply, the cost of living of London residents is the same as housing prices, soaring wildly, and for the middle class, the senses should be the strongest.

For example, the cost of a four-year-old child's education in the Thomas area of ​​London every year is as high as 17,000 pounds, which does not include miscellaneous expenses, such as school uniforms, activity fees, and so on.

The middle class is facing tremendous pressure in life. How can they still be able to buy a house in today's record-breaking housing prices?

The influx of funds from all over the world into the London housing market has caused local housing prices to rise to a position that is quite unrealistic compared to per capita salary.

Of course, we cannot deny that, as one of the four major financial markets in the world, a large number of bankers from all over the world who work in the City of London, after receiving high bonuses, are interested in buying properties there, which has also become a huge increase in London housing prices. One of the driving forces behind, how can ordinary people have such a high income?

Compared to 20 years ago, house prices in London are now more than 5 times what they were in the past, and how much has wages increased?

We Chinese have a word called Sheng will decline, you should understand what that means.

London house prices recorded again and again to refresh the ceiling, do you think this situation for how long?

Now just missing a slump opportunity Bale.

And we need to do is catch up before the bubble burst, and quickly complete the project, and then make a small fortune, exit holding large sums of money, such as the price fell to the bottom, then we have the cash to buy the dips, a return to , there is considerable profits. "

Hugh Grosvenor could not help smile, "I agree with jason opinion ..."

William smiled bitterly, "Wait, I didn't say disagree, I just want to know what can be avoided~"

"What? Avoid? Do not be so naive William, this is the trend, no one can stop us, such as Europe and the United Kingdom it off, you can do intervention?

Most potential buyers of real estate do not understand too many twists and turns. They only look at the appearance. The incident of Brexit is not good for the UK on the surface. People have no reason to go to a city with many uncertainties in the future. purchase of real estate.

Those who have made London real estate market as a springboard into Europe and international investors, also maintained a relatively calm and prudence.

Of course, I said before that this short-term period may be 2 years later, why don’t I say 1 year?

Because a large number of country Z investors have set off an upsurge to acquire landmark buildings in London, which will cover up the danger of real estate collapse, but for those investors who enter the market early, they will not give up their vigilance, and country Z investors will not. may be throwing money continuing to come in, once the two sides have stopped throwing money moves, then 'bang' bang, this bubble will break up! "

He made a gesture with both hands explode in his mouth to imitate the sound of the blast, also William scared Ji Ling.

Hugh Grosvenor gloating laugh, was William stare and said, "According to this idea to analyze, another big player in the London housing market in the Middle East, especially Saudi investors, is also noteworthy.

Since last year, Saudi Arabia and the United States have competed in the field of shale oil. Oil prices have continued to fall, and a large amount of cheap oil has flowed into the market to try to grab more shares. Affected by this, many Gulf Arab countries will face heavy budget deficits, which also means these State and take no part nationals have too much money into the London real estate market.

Middle East rich are then unable to investment and attract foreign capital back to the country, under this background, a large sovereign wealth funds and wealthy individuals to invest in London real estate market is also greatly reduced the level of interest, not the large sums of money eat stays, rely on a few people's money, do not hold such a large base plate of the housing market in London, the collapse is not hard to understand! "

Yang Cheng clapped his hands, "That's all right! What I said just now is that you, the British ZF, will not only be unable to provide effective remedial measures, but you may even stabbed yourself. Recently, no MPs are advocating against the city of London. Is it a proposal to requisition the vacant houses owned by the rich?"

He was not nonsense, and indeed some Members proposed in the newspaper ~ www.wuxiaspot.com ~ expropriation of the rich and idle housing, no room allocated to poor use, the lawmakers also stressed that it should not be such a phenomenon in London - - rich people put their high-end luxury residential building or as a reserve for future land, on the other hand the city's homeless are looking for a place to live, but struggling.

In this regard, Yang orange view is - a nice idea, but do not have the room for maneuver, once the proposal is adopted, the wealthy London can be reduced by half immediately, the remaining half could not walk or want to go, it is estimated that time to hold If they lose money, they will run. Is London without the rich?

By the time the result was the same, the property will still collapse.

I can only imagine what it was like pauper in London do?

But the current debt ratio British point of view, this scenario is not difficult to achieve, after all, not even the middle class almost on a credit card.

William reluctantly shook his head, "I really powerless, but jason, you can view today, I relayed to my grandmother? I think it is necessary to let her know."

Young orange hesitated a moment, "Sure, but forewarned, this represents only my personal point of view, and will not be held responsible, in addition, I will not give up the view that money."

Hugh Grosvenor once said, "I support jason! Although I am English, too, do not want to see sad scene took place, but since it can not stop, we can only do their own thing."

William nodded his empty two little prick, "Rest assured, the company also has interests in my ..."

Yang Cheng slapped his thigh, "OK, according to what I said, plan the project as soon as possible and start construction, and strive to start returning the funds within two years. By the way, the builder has no objection to the construction team of Yuanshan Capital?"

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