As the 1% race to get into the 0.1%, I wonder what will happen to London. No. 1 Hyde Park is where the cheapest flat is marketed at £6.5 million. There are property fairs where many billions are seeking to build & invest only in rental investments. Thus, the supply & demand is against the prospective upwardly mobile middle class. In fact, the middle class is being eviscerated by Central Bank policy and property speculation. Back of envelop calculation tells me if you want to buy a 1-bedroom flat in zones 1 to 3 (central London), where you deposit 10% down, you need an income of a million pounds to make sure you dont go bust. BTW another back of envelop calculation tells me if you are making say £50k per year, you will not have anything to show at the end of the year if you live in Central London. This is why we live just outside of London, where the air is fresher and the shock of product-inflation is less. But note: if I didnt have a Freedom Pass because Im 60+, I could not afford to commute to & from London. Public transport costs & service, are insanely high & very poor, respectively. Upshot: low interest rate manipulation by the Central Banks is definitely making the rich super-rich and the middle class poorer. This is just a fact. A whole generation is facing no entry into upward mobility.
Posted on: Fri, 23 Jan 2015 09:20:04 +0000
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