THE DEBT REPORT
Recent data shows that home loan approvals were only 45,000 in April 2011 which was down 8% on the year but more importantly it can be compared to the November 2006 peak of 130,000.
THE WEALTH REPORT
HM Revenue predicts that this year 1% of Britain’s population will earn 12% of all income tax and also that the top 5% of population will pay a quarter of all income tax.
THE INFLATION REPORT
Sir Mervyn Allister King, GBE (born 30 March 1948) Governor of the Bank of England and Chairman of the Monetary Policy Committee knighted for services to inflation and at his age he has been through the 1970’s inflation period and the 1990’s recession.
SWITCH TO TANGIBLE ASSETS
With inflation in the air it is worthwhile looking at a number of Mayfair properties which over the years indicate the value of investing in tangible assets.
Last month Wetherell sold a ground and lower maisonette on a 53 year lease in Aldford Street with terrace in the heart of Mayfair Village for just under £4M. In May of 2005 I was acting on the purchase at £1.8M but missed out to another buyer on the 59 year lease.
Wetherell have just put under offer at just under £3M an apartment of 1,863 sq.ft. in South Street (962 year lease) that I originally took on 28 years ago at £325,000.
We have just sold an unmodernised 3 bedroom apartment in Grosvenor Square at nearly £2,750 p.s.f. which in 1998 I valued at £622 p.s.f.
More than double in 6 years with a depreciating lease, a tenfold increase over 28 years on a freehold tenure and a fourfold increase in Grosvenor Square £p.s.f. over 13 years.
Between all these increases we have had ups and downs in the market but as a long term investment Mayfair and prime central London property have proven themselves over time.