Wednesday, 2 September 2009

Elle Macpherson Can’t Counter London Gloom as Americans Flee

Long time not posting.... I got swine flu in early August, rested for a while and was extremely busy with all those short sales negotiations with lender.

Here is very interesting news from Bloomberg regarding American expat fleeing from London.

Elle Macpherson Can’t Counter London Gloom as Americans Flee

The number of U.S. citizens in Britain fell 3.8 percent to 126,000 in the 12 months through September, according to the Office for National Statistics. The American School in England, based outside London in Thorpe, Surrey, expects enrollment to fall 4 percent this year, the first drop since the Sept. 11 terror attacks, said Karen House, interim admissions director.

Reasons are:

- Due to tax reform, those who are making more than GBP150,000 are liable for 50% income tax.

- Corporations have cut down expat benefit drastically.

- Financial industry continues to reduce jobs.

- Foreigners who have lived in the country for more than seven years must pay 30,000 pounds annually or give up the special status that shields overseas income from British taxes.

London is one of my favorite cities. I have many friends and clients there and visiting London a few times a year since 1997.

As I wrote about London's real estate price decline in foreign currency, it is said that 50%+ of real estate transaction in Central London are by foreigners.

Also, London is ranked No.2 city for Billionaire --- there are so many wealthy foreigners living in London.

London's economy has been booming for 10+ years and has been very friendly to talented and/or wealthy foreign individuals. However, it seem that, current economic slow down are changing attitudes toward wealthy foreign individuals in London.

This means property price in London continues to go down????

Happy Investing!!!!

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