Trouble in Greece increases London Property Investment
Recent Euro trouble causes London house prices to rise
At You Sell Quick we have been commenting about the trouble that Greece is facing for the past month. As we currently stand it’s headline news that Greece may default and have to leave the Eurozone completely. Also, just to mention if they do then they will have to immediately return to the drachma and they will represent this by wither stamping the existing Euros with a red stamp or by simply tearing the corner off the existing Euros!
Anyway, what’s this news about the London Property?
Well, there was a surge of interest in London property last month from Overseas investors. It’s been noted that investors from both Spain and Greece are looking to buy a house in the capital. Information collected from the property site of Savills actually recorded a 40% increase in searches from IP addresses in Greece.
House supply low and level of buyers high
It appears that the more Euro trouble we have London Home prices benefit and increase. London prices are also being boosted by further investment from China and the middle East. It appears that London really is a safe haven and obviously has a very famous brand name. What people seem to be realising is that it’s almost impossible to build any new houses in the capital. Simply supply and demand economics and coupled with a rising population, means that prices could reach far higher levels in the future.
Other parts of the UK and also countries who have lots of land available. May not have a supply and demand squeeze in the future. In fact some poor areas may become so unattractive that they could possibly be completely wiped out as we have seen with ghost towns in Liverpool. Anyhow, the current economic situation for Europe seems to be on a knife edge and it seems more apparent than ever that Greece will default. They mentioned earlier in the week that they were considering leaving the euro zone back in 2010, this has sent further jitters through the financial system.
Euro zone crisis may cause UK House prices to fall
Obviously everyone is looking at the what if scenario and a “dominoe Effect” is at the tip of everyones tongue. Firstly, the heavy lenders like Italy and Spain will have to wipe off huge debts, and they are already in serious trouble. Secondly, the European Central government has only really wanted to prevent Greece from leaving the EU as it will set a new precedent and obviously they don’t want the whole system to come crashing down.
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