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Alexandra Borovik

If I had 20 million pounds, Would I invest it in luxury property !?. A study of fluctuation in top property prices in crisis and reasons to invest in top property . . Alexandra Borovik. overview. 1 .The fluctuation in property prices

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Alexandra Borovik

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  1. If I had 20 million pounds, Would I invest it in luxuryproperty!? A study of fluctuation in top propertyprices in crisis and reasons to invest in top property. Alexandra Borovik

  2. overview 1.The fluctuation in property prices - the definition of fluctuation and the consequences -real estate market after the financial crisis 2.The nature of top property • -definition of top property • -rich segments of property market 3.The fluctuation in top property prices • - decrease in prices after the crisis in 2008 4.The reasons to invest in luxury property. 5.Conclusion

  3. Fluctuation in prices • change in prices or interest rates, either up or down. Fluctuation may refer to either slight or dramatic changes in the prices of stocks, bonds, or commodities • FLUCTUATION IN PROPERTY PRICES • -instability in pricelevelthatiscaused by anyexternalfactors and affects the demand and supply of the property.

  4. Consequences of fluctuation • Negativeeffectson the real estatemarket: • -The decline in propertydemand • -The loss of money from international investments • Negativeeffecton houseowners: • -highinterest rates and unability to pay the debts • -very hard to sell the house

  5. The Falling property pricesduring the financial crisis . In Europe • France were down - 9.9% • Germany -2.2% • Britain’s housing -16.2% • Norway- 7.5% • Poland -7% • Iceland - 2.7% • Finland’s market fell by 3.3%

  6. …..in Russia and Asia A noticeable decline in 2008-2009 prices due to the financial crisis Hong Kong statistics Russian statistics

  7. LUXURY PROPERTYis the real estate market niche targeted at the highest socio-economic group ofconsumers • Characteristics define luxury real estate: • location • price per square meters • Size • a prestigious neighborhood • security

  8. Rich segments of Real Estate Market Monaco boasts the world's highest GDP nominal per capita at $215,163 and is the most densely populated country in the world.

  9. The Fluctuation of Top Property prices in crisis Prices in central London

  10. fall in prices of the mostexpensive locations during the crisis • -Dubai - prices have fallen by 50%. • -New York have come down by 20-30%; • -Beverly Hills dropping by 30%.

  11. - Answer to our question • Despitemanyfactsshowingthat the level of fluctuation of top propertypricesisquitehigh and thatLUXURY propertydoesntmean SAFE property… • I wouldinvest 20 mln £ in top property… • Becausethere are somefactorsthan are more important for us than money and extra earnings…

  12. Reasons to buy a luxury house • 1. Health. Luxurypropertyimplies good location. • 1. Aesthetics point of view. People buy their houses and enjoy their beauty. • 3. Safety. My house is my fortress • 4. Psychologicalreasons. Confidence, Emotional satisfaction.

  13. Conclusion • The analysis showed that top property prices are affected by crisis as easily as property prices in general. • It is a choice of each of us to invest money in top property or not, • Howeveritisclear • that good house contibutes to ourwellfare and safety of ourfamily.

  14. Bibliography • 1. Global Property Guide, “UK house price growth weakens in Q3 2010”,2011.  [internet] 17 May. Available at <http://www.globalpropertyguide.com/Europe/United-Kingdom/Price-History> [ Accessed 10 may 2011] • 2. Global Property Guide, 2010. [graph], [internet] Available at <http://www.globalpropertyguide.com/Europe/United-Kingdom/Price-History  • [ Accessed 10 may 2011] • 3.Pollock,I., 2010,BBC news, ”Will house prices fall or rise in 2011“.[internet] Available at <http://www.bbc.co.uk/news/mobile/business-11914386>[ Accessed 6 may 2011]

  15. The end Thank you for your attention

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