Average home £1million by 2024

Market_Oracle

wolvoman wrote:

If your figures of $1 or $2 trillion are approximately correct then this will have negligible impact on the UK housing market.
Even $2 trillion would only buy about 6,000 houses at average UK price of £200K. Over 300,000 homes were sold last year in the UK so 6,000 is a small percentage of that. And that makes the fantasy assumption that every penny saved in China will be spent on UK domestic property - somewhat unlikely don't you think?

Yes its unlikely to happen, as the Chinease are more interested in resources and technology, and there are other consquences of the Chinease diversifying which are negative ,i.e. US bond market and dollar falling resulting in much higher US interest rates.

But your sums are wrong With just $1 trillion the Chinease could buy about 2.7 MILLION UK homes Now that would be funny

The reason I say this, is because the money being pumped into London from the likes of Russia has driven up London house prices a lot !

(the sums for u.... $1,000,000,000,000 Divided by Exchange rate 1.89 = £529,000,000,000 - divided by £200,000 = 2,645,503 UK homes)

ManAtHome

Yes, quite a bit of speculation about where the Chinese 100 billion a MONTH trade surplus is going to end up. Seems more likely to be the US who they need more as a market (and are much more heavily invested already) than the UK.

Do you think they'd go for property rather than companies?

ps
Blimey, you are a Noracle - answered that before I'd asked...

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