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Investors looking to double money in London - 15 June 2010

Investors in prime central London housing are almost exclusively foreign-based buyers looking to double their money by taking advantage of the weak pound and currency deals from private banks.

Curzon Investment Property, a niche London-based investment agent says all its clients this year have come out of Asia and South Africa, all in US pegged currencies or US dollar.

With an average annual growth of 9 percent per annum across prime London residential since 1969, even pessimistic investors can make great returns.

James Moss, director of Curzon Investment Property, said, "Quite a few banks, particularly private banks which many of our international clients use, offer mortgages across a range of currencies. With sophisticated SWAPs options built in, clients can "lock in" on currency profits when the FX shifts in their favour.

"We conservatively estimate that clients gearing up to 70 percent mortgages can see 100 per cent equity profitability in eight years. This is based at a very conservative growth model of 5 percent per annum compounded. The trend is nearer to 9 percent per annum since 1969 in prime central London across Knightsbridge, Belgravia, Kensington, Chelsea, Notting Hill and Holland Park.

"Some of our clients based in foreign exchange based currency are aggressively financially modelling 100 percent return on their equity in less than 4 years. This is all underpinned by sourcing and buying the best prime central London investment property which grows conservatively and pays its own way in the meantime. If their assumptions are correct about Sterling they have a very realistic chance of achieving their four year payback target."

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