Part Two of
In this three part study about London international real
estate investing we saw in part one that sometimes real value
can be distorted by a local real estate crash. Use the arrow
above to go back to part one about international real estate
investing if you have not read it. Part one shows how (when
I bought London international real estate) most London real
estate buyers were not aware of inflation in other countries.
London real estate buyers were inadvertently beggaring
their neighbors. London businesses could operate cheaper
then elsewhere because it cost less to house their employees.
This gave London real estate an unfair advantage. Their low
real estate prices were not caused because there was a greater
supply of London real estate nor were London builders more
efficient nor were London building materials more abundant.
London real estate was cheaper only because international
real estate investors elsewhere had not yet seen the discrepancy.
London International Real Estate Investing Currency Distortion
Then prices really became cheaper when the pound crashed.
I was lucky to buy when London real estate was beggaring
their neighbors the most. This did not last long. Overseas
buyers (like myself) caught on to the cheap prices and Americans,
Japanese and Arabs began investing in London real estate.
Prices soared. So much money flowed into London that the
See how much currencies were worth.
Picture of Bedford Park where
I bought my first London international real estate from Greatbuildings.com/buildings/Bedford_Park.html
London International Real Estate Investing Pushes Pound
As is usually the case the pound had been oversold at its
bottom, so that it rose dramatically. The effect was shattering
on my business (remember that at work I had pound expense,
but U.S. income), but in my house sale, the results were
London International Real Estate Investing Balance
Much of the profit I enjoyed from the sale of this house
came from the very forces that later nearly ruined my business.
I was sitting at just the right place at the right time and
the falling currency earned me a big profit. Later (as you
saw above) the pounds rebound nearly ruined my business.
The falling pound made money for me more than once. My clients
cashed in also when I spotted both a real estate and currency
distortion as you will see in the next message. Use the arrow
below to go to part three of this three part series.
Learn more about international
real estate at Ired.com
For more on international real estate investing
distortions go to Successguidelines.com