Canadian Passports When Buying Of Foreign, Ownership Is Thus A Function Of The Capital 's Cosmopolitanism

1051 Words Apr 14th, 2016 5 Pages
Canadian passport when buying. The high rate of “foreign” ownership is thus a function of the capital’s cosmopolitanism: about one in four Londoners is a foreign citizen.” (The Economist, 2016)
Generally, foreign investors are defined as those who normally reside overseas, this is distinct from those who were born overseas but normally reside in London (as is the case with 37% of Londoners according to the 2011 census). Residential property investors in the majority, buy with one of three intentions: Firstly, buy to let, in which either private individuals/companies with large to small portfolios purchase with the intention of high London rental yield. Secondly, buy to sell investors, who buy in bulk from a developer at a discount to sell on privately. Finally, build to let, in which property is bought off plan with the intention of being let through an agent.
It is said that any process involving large financial sums and transactions, there are significant benefits and drawbacks. It is said that without foreign investment and off-plan purchasing, proposed developments would have not gone ahead due to UK banks being more fearful of funding such ventures since the financial crisis of 2008 (The Economist, 2016). In addition, an increased demand of new homes is said to stimulate construction, which in compliance with UK law must incorporate a certain percentage of affordable and social housing. It is also argued that new homes are a source of investment for everyone, not…

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