Published: 25/01/2014 By Colin Breavington
Yesterday The Evening Standard reported that the total worth of London property had increased by £106bn during 2013. In their report they say:
"London's homes generated more wealth than the entire New Zealand economy last year as their total value soared by in excess of £100 billion, according to new research.
Huge demand for flats and houses added £106 billion to the total worth of the capital’s increasingly precious bricks and mortar market..."
This increase can be positive for estate agents but it is becoming increasingly difficult for first time buyers. Last year the average London first-time buyer salary was £41,616. Big deposits are also needed with £66,150 being the average for first time buyers, who bought property priced at an average of £276,881.
Prices are partly being driven up by foreign investors. At Webdadi we have been seeing an increase in demand for websites to showcase London property to overseas markets.
You'll need to form your own opinions on whether this is a good news for you. Our overall view of this story is positive, especially as some traditionally poorer boroughs are seeing increases following some much needed local regeneration investment.
Read the full Evening Standard article here
So other than buying New Zealand what could you do with £106bn?
- In September 2008 Zoopla valued Buckingham Palace at £1bn. Not sure you would need 106 of them though.
- If you wanted to have a little gamble with some of the money, you could spend twenty billion one hundred thirty-six million six hundred ninety-five thousand and forty pounds, which would buy you, ten billion sixty-eight million three hundred forty-seven thousand five hundred and twenty lottery tickets. You would then win you every possible prize that week. However, assuming it takes 10 seconds to process each ticket, you'll be waiting for around 3,000 years for the shop assistant to processes each of the lines. Oh and you would make a loss, so we don't recommend this.
- If you are looking to invest in business then oil and gas firm 'BP' could set you back £84bn and you would have some change to spend on celebrating your purchase. Or alternatively, if you didn't want to put all you eggs in one basket you could buy 30 of the FTSE 100 businesses. Of course we are just using the 'market cap' as a measure so don't quote us on it.
- If you're feeling generous, you could give every person in the UK £1,663 each. We like the sound of this one.