Dirty Money Inflating London's Real Estate Bubble -- The British Property DOOM" not "BOOM

Exploding real estate prices, zero interest rate, and a rising stock market – the rich are getting richer. While the average citizen is getting poorer. Never before has there been as much money as there is today and rarely has money been so cheap, and yet the central banks continue to pump money into the world . We are being flooded by trillions of dollars and euros. It's never been easier for investors to get their hands on cheap money, running up debts is practically free of charge. Cheap money endangers the entire economy and promotes increasing levels of debt. This influx of money is extremely dangerous. It's slow, but at some point, the dam will burst, and then we'll be in a massive crisis. This flood of money doesn't just save States and banks; it also favors the rich who use this cheap money to buy shares ,companies, and real estate with rapidly rising values. Poorest citizens suffer because real estate prices are going up and, therefore, rents too. London, the world's largest financial center, illustrates very clearly the effect of this monetary deluge. Trillions are traded here 300,000 employees in the financial sector are trying to turn money into even more money. London's own real estate prices are skyrocketing. All the major banks have offices here. This is where the capital of the world's wealthy is invested. In London, there are neighborhoods where millionaires are being pushed out by billionaires. The London property market has been sold out to speculators. The expensive houses are all speculative objects and empty. London belongs to investors who don't live in the city. Right now, there is an excess of 40,000 properties in London that are owned by anonymous offshore corporations. Meaning that we don't know who the owners; it could be decent people they could be mafia. We suspect that a lot of this money that came through London that it exploded prices here is actually of dirty origin. Speculating with real estate is the big game in town . Trillions of dollarsin london from Russians Germans Chinese and Indians have poured into London. Welcome to Atlantis Report. Over the last two years, house prices have been rising across Britain. The consequences are being felt everywhere. And nowhere more so than London. These are the results of a house price explosion — no negotiation on prices whatsoever. From the struggle to find the first home. To those seeking to profit from the boom. The options to buy are becoming ever more bizarre. And the cost of a home is forcing people to move out of the places they've lived their entire lives. As the pressure builds, neighborhoods will never be the same. And now prices are rising fast in other parts of the country. Across the country, the average cost of a first-time buy a property is now a hundred and ninety thousand pounds . In London It's two hundred and eighty thousand pounds. Without family help, the average first-time buyer would now need 22 years to save for their deposit . over the last year, house prices across the UK have risen by more than 10 percent. High house prices mean those trying to get onto the property ladder face the biggest challenge. The average deposit needed by first-time buyers in the UK is now twenty-five thousand pounds. Across the country, 2/3 of first-time buyers now rely on financial help from family members to get onto the property ladder. The high cost of housing means there are now more than three million people aged between 20 and 34 living at home with their parents. Experts believe surging prices are proof of a chronic shortage of homes. In London, the population has grown by nearly a million people over the last five years. So the housing shortage is acute. One of the significant issues for the London market is an undersupply . They are just not building enough homes compared to those that are required. The market needs up to fifty thousand homes here in London, to meet the demand; they are currently building only about twenty thousand. Foreign buyers bring to the equation is the fact that they're generally cash rich. Developers point of view they do not have to wait for domestic buyers to get a mortgage or indeed for local buyers who might be in a chain. Most overseas buyers, perhaps almost all foreign buyers, are going to be cash buyers, and that's a massive advantage to a developer. Until this year, many new homes were sold abroad before being sold in the UK. One area of the country above all has been affected by the house price boom. If you take the extreme of what happens to house prices in London and you wanted to focus on one area, then that would be the borough of Hackney. Thirty years ago, this part of East London was one of the most rundown areas of the capital. In recent years Hackney has been the epicenter of the explosion in property values. In the period since 1995, since the Land Registry has been releasing data at a local level, their index tells you the prices in Hackney have gone up by six hundred and twenty-one percent. London is now a global property market. 75% of all newly built homes in central London are bought by foreign buyers. The average cost of a home in the center of the capital is now a record of 1.6 million pounds. There's absolutely no doubt that the increase in overseas demand an investment demand is having massive knock-on effects in terms of affordability. And what this means is that it's become increasingly unaffordable for large numbers of people, ordinary Londoners, within the city who's seen their chance of buying; basically, evaporate. Not many Londoners still live in London. Most of them sold their houses in London, made a fat profit, and moved to a suburban hideaway. Some leave the city entirely and forever. Traditional Londoners are actually moving outside London. Asian people are buying properties, and the Brits are paying rent. From a socio-economical perspective, it is not sustainable. You cannot have a city where residents and workers cannot live. In London, the average cost of a home is now more than half a million pounds, something that has consequences all around the country. If The government does not tackle the housing crisis with urgency and intent. We're going to continue to see major impacts for certain groups. For younger people, it's going to mean more money spent on rent; as a result of less money to spend on other things. We're going to see more examples of parents and grandparents releasing wealth from their own housing; that's going to affect parents' and grandparents' ability to pay for their care in old age. The big worry is this housing crisis will be the drag on economic growth now and into the future. Shitty weather year-round and people will pay top dollar to live there. It makes no sense. I understand the benefits of having good transportation and necessities on your doorsteps, but the homes in London are small, ugly, depressing, and overly expensive. London house prices are surreal. Only worth it if you are a greedy investor looking to make a killing by selling it over to someone dumb or desperate enough to take on such a financial burden for a rabbit hutch. No wonder renting is so unaffordable. These prices are not realistic compared to most people's incomes. Soon only the rich will be able to live in London, and the lower class workers will have to spend a fortune commuting into work every day; Because they will be priced out of the area and will have to find cheaper areas outside of London to live. It's nothing more than enforceable greed on the part of investors . I cannot see how this can make for a fair and balanced economy. Something will break in the future. It's not enough that the few very rich speculate on the housing. The market itself is manipulated to favor even more the rich. Cash buyers simply mean black money; especially if it is from China. These are people who need to send their money abroad as quickly as possible, so if the government catches them, they flee the country because otherwise, they go to jail for a long time . All the human trafficking, kleptocracy, arms dealing, blood diamonds, drug dealing, etc. Money is getting laundered through real estate deals. Europe should make it illegal for foreigners to buy property on the continent unless you are really coming to live here. But London doesn't have a monopoly on real estate bubbles. They now exist in cities around the world. One reason for this problem in many cities is the artificial land shortage created by zoning regulations. In places like Hong Kong or Singapore, you have a real shortage of land because they are freaking islands. In London, an artificial island is created by the Green belt. Similar zoning restrictions exist in many other cities in the world. They are usually implemented in the name of the "environment" but are actually designed to enrich the landowners. It's interesting that foreigners aren't allowed to buy property in China and many other Asian countries, yet they are buying up London. They're doing the same thing in New York City, Los Angeles, Canada, and Australia. Shame that our governments allow this to happen. Housing price is millennial global issues. This crisis arises due to weak government and developer lobbying. Transparency and accountability on the property market should be the priority. If this boom has increased mortgages, and banks have secured them as mortgage-backed securities. Then Britain is looking at a systemic financial crisis in the next decade, as wages aren't increasing, and the corrupt government and the bankers would soon legislate selling homes to even those who can't afford to increase the financial volume of the MBS. This is the true cycle of a boom, the greedy grind as much as they can from it until they can't anymore, then bust. Middle and lower classes are getting squeezed, and that's considered BOOM. The problem with bubbles is that nobody knows when they're going to burst. One thing is certain. The next global recession is just around the corner. This "boom" will quickly become doom. If a real-estate bubble were to burst, sure it would hit the wealthy you are invested there. But they have a diverse investment portfolio. They seize opportunities around the world. If the real-estate bubble in Munich were to burst, they'd be in Rio or Tokyo. They can act globally, but the middle class cannot. As seen in the financial crisis of 2008, the middle class is hit while the rich get richer in times of boom and bust. Not much has changed; the minor regulations introduced into the financial sector aren't very tangible here in London. The speculators are looking for new ways to make more money in the world's number one financial center. Many transactions are now taking place in the shadow banking system. The bonuses , the lucrative deals are as plentiful as ever. And Brexit will see the regulations relaxed even further. The city is full of greedy, ruthless, clever people; if they put bit more regulation a little bit more compliance or some restrictions; these guys work out how to game the system to make Sure that it benefits them. The financial system will keep growing and sprawling the prospects of big profits the low-interest rates. The deluge of money. The show must go on.

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