London Has Peaked

theEnd

Interesting to see if the oil price crash and now what looks like some serious problems for Russia will have implications for the wider economy (including London property).

I would expect Russian's buying in London is fairly insignificant, but if the problems spread....

In_For_A_Penny_2

theEnd wrote: »

Interesting to see if the oil price crash and now what looks like some serious problems for Russia will have implications for the wider economy (including London property).

I would expect Russian's buying in London is fairly insignificant, but if the problems spread....

I would have thought London would be a pretty good destination for capital flight out of Russia.

wotsthat

In_For_A_Penny wrote: »

You reckon interest rate rise in Russia will cause mortgage defaults in UK?

Maybe he's just showing off about the great interest rate he's getting on his Russian building society account.

Bubble_and_Squeak

In_For_A_Penny wrote: »

I would have thought London would be a pretty good destination for capital flight out of Russia.

are there capital controls limiting how much can exit russia?
also, investors may have assets frozen due to sanctions
and the price of assets denominated in sterling has almost doubled from a ruble perspective
furthermore, prime london property is depreciating

In_For_A_Penny_2

Bubble_and_Squeak wrote: »

are there capital controls limiting how much can exit russia?
also, investors may have assets frozen due to sanctions
and the price of assets denominated in sterling has almost doubled from a ruble perspective
furthermore, prime london property is depreciating

As far as I know, having followed the Russia situation fairly closely,

(1) There are no capital controls in place (yet).

(2) The asset freezes only currently target a handful of Russia's great many millionaires/billionaires.

(3) Most of the rich will not have their assets sitting in cash Roubles.

(4) No comment!

Bubble_and_Squeak

In_For_A_Penny wrote: »

As far as I know, having followed the Russia situation fairly closely,

(1) There are no capital controls in place (yet).

(2) The asset freezes only currently target a handful of Russia's great many millionaires/billionaires.

(3) Most of the rich will not have their assets sitting in cash Roubles.

(4) No comment!

so they can just leave their assets as they are?

wotsthat

Bubble_and_Squeak wrote: »

so they can just leave their assets as they are?

Doing nothing is always an option but I very much doubt rich Russians have left it until today to have a think about protecting their wealth.

They've been selling Roubles and hoarding cash for a while now. That cash is eventually going to be looking for a safe home. Some will make it to London no doubt but how significant this will be for the London housing market I don't know.

Crashy_Time

In_For_A_Penny wrote: »

You reckon interest rate rise in Russia will cause mortgage defaults in UK?

Interest rate rises in Russia take us back to the scary times of the late 90`s when countries were going bust and their banking systems blowing up. If Russian banks default on debt it will impact French/German/Other banks and could cause a tasty little credit crunch (again)

Crashy_Time

In_For_A_Penny wrote: »

I would have thought London would be a pretty good destination for capital flight out of Russia.

The people who have sizeable assets to get out of Russia will probably already be out, and they are unlikely to be snapping up the rubbish that London I.O sheeple have borrowed on.

Bubble_and_Squeak

Yay!
Crashys back!