Hello Investors and welcome to another edition of our Client for Life newsletter.
Today I am writing to you from London. I have had a wonderful week over here fully immersed in Central London Property. The city is so vibrant; alive and well bustling with international investors at every turn. Why not when you have no capital gains tax as a foreign investor? London has become a property tax haven overnight! I have often debated what my favourite city in the world is; but I believe it now to be London.
Solid Group are now members of the London Chamber of Commerce, Australian Business and soon to be London Partners. The week has been filled with meetings with Property Lawyers, Tax Accountants and Membership Groups with specific focus on working with Australian Companies to assist with our seminars. The exciting news is that with a small client base here already, we have now taken on two new clients, and are part way through the arrangements for our launch. Our first seminars will be held in June 2013 as a joint venture with Australian Business here in London. Our focus is going to be a two way street. London xpats and residents buying in Australia and also offering our Australian clients opportunities here in London.
Central London seems to be unaffected by the GFC. As a town, it seems to be insular to external influences and is a haven for the wealthy Europeans to preserve their money into real estate. With no capital gains tax for non residents holding property, it has great appeal to many specifically wealthy Russians, Greeks and Italians wanting to preserve their wealth, The French have a recent tax imposed on the wealthy. This wealth tax is as high as 75% to some French residents. So as you can imagine there is a real drive for people to declare themselves British citizens and escape this huge tax threshold. All of these influencing factors are driving the Central London property market. Despite the recent economic indicators, Central London has a history of price preservation. It seems to be an economic epicentre all of it’s own; immune from the domesticity of the United Kingdom.
A two bedroom 90m2 basement apartment in Central London starts at around £700,000. The average real estate here really starts in the mid $1.5 – $2.5. A bedsit or studio apartment in Kensington is around £480. Yesterday I had a tour of a very old and well established apartment block in Pimlico, just near Chelsea. There were 3,000 apartments. It was beautifully laid out with a lovely central garden to create lovely open space and the external walls all boasted reasonable views. A far cry from the circa 80 apartments we are promoting in Australia.
I trust you enjoy our latest edition of our newsletter.