Buying property before BNO holders come

[laukuk]

Few of my Hong Kong friends started selling their super expensive property in Hong Kong, and planning to use that money to buy 2 properties in London + other cities and move to UK with Boris's BNO policy. One to live, one to rent.

Some of them have extra cash enough to buy a 2 bed flat in east London without mortgage and they started approached properties agents...

Do you expect this would keep/push up the property price in UK?

Of course the prices will go up.
It's inevitable and people will have to move out to find places to buy that are more affordable.

I literally could not give a shit.

Home ownership is a pipe dream for me as I'll never be in a position where I can save for a deposit.

If they can afford to buy, well, good for them. BNO status is a direct legacy of our colonialism and I'm glad we're actively welcoming people to come to the UK. It's a refreshing change.

I do know a couple of youngish Hong Kong BNOs who are hunting for a London bolt hole. They are looking for a modern 2 bed zone 1 or 2 and have around one million to spend. I think it might keep the cost of new build flats steady rather than a price rise.

Yep, the low tax system in Hong Kong let them accumulate wealth much quicker than us, and now they could bring the cash they saved over the years and buy properties in UK without a mortgage.

I'm more worried about the recession. Threads like these stoke up resentment.

Good for them. Once here they may never be able to return to their home country again thanks to the repressive stance of the CCP. Being able to afford a house here will likely be small consolation for that.

I agree with timetest. There's going to be fewer sales than normal for some time, despite the stamp duty holiday, so a few sales to people moving here from HK is going to keep prices level rather than dropping not fuel an increase.
Realistically, the majority of HK citizens are not in a position to do this and most will not come here (but having read this morning's news, I wish more would!).

Maybe it will be balanced with the Chinese investors withdrawing from the UK (London!), as relations between China and the rest of the world become more challenging?

The majority of HK BNOs who take up the offer will be highly qualified, hard working, affluent individuals who will help aid Britain’s economic recovery.

It might help keep the housing market stable in London but I don't think its going to be much help in the rest of the country. Good luck to your friends, its a big move but I imagine things in HK must be getting unbearable. Hopefully they will find a nice life here should they not be able to return.

I'm glad we're actively welcoming people to come to the UK. It's a refreshing change.

It’s great but it’s hardly “a refreshing change”.

I doubt it. It might mitigate against a crash in the price of luxury properties but it’s not going to make any difference to prices across the vast majority of the U.K. property market.

Payback time. Opium wars.

Good for them - I would not want to live under a repressive regime, and it is good to see the British government taking some responsibility here and offering BNO's an out from their current situation. If it affects the housing market, so be it, this is a simple case of doing what is right.

Even from the selfish economic perspective - highly educated, english speaking immigrants who will be a net positive to this country, spending money in British shops and in some cases setting up their own businesses - what's not to like?

HK property market prices increased by 300-400% in last decade. Every one there try to take out insanely large mortgage and buy super expensive apartments. £1 million 2-3 bed apartments in average area are normal. The same might happen in UK soon.

To my knowledge, the wealthiest usually own more than one apartment there. This is HK people goal to own as many property as possible to collect rent so they keep buying pushing up the property prices there.

Right.

What exactly do you have against HK people? Are you a mainlander by any chance, OP?

HK property is insanely priced. Many, many people rent. Many of those renters will have BNO passports and so won't benefit in any way from the property boom. In fact, it may well be detrimental to them.

HK citizens are no more homogenous than UK citizens. They face similar economic problems. Some are incredibly wealthy, some are incredibly poor. Most are in between.

I don't know why you keep making statements designed to suggest UK citizens should be unhappy about offering them an escape route, but you should seriously consider packing it in.

The Chinese government isn't going to want all that wealth flowing out of HK.i can easily see them finding ways to block it or tax it, to disincentivise this.

Besides, who's to say Hong Kong property values aren't going to plummet?

@DuggeeHugs

Right.

What exactly do you have against HK people? Are you a mainlander by any chance, OP?

HK property is insanely priced. Many, many people rent. Many of those renters will have BNO passports and so won't benefit in any way from the property boom. In fact, it may well be detrimental to them.

HK citizens are no more homogenous than UK citizens. They face similar economic problems. Some are incredibly wealthy, some are incredibly poor. Most are in between.

I don't know why you keep making statements designed to suggest UK citizens should be unhappy about offering them an escape route, but you should seriously consider packing it in.

Nope, starting discussion posting facts means I am mainlander? Just wanted to discuss the potential impact on property prices.

I have been working there for a while so knowing a bit. Many of my friends there own expensive apartments.

@BeeFarseer

I literally could not give a shit.

Home ownership is a pipe dream for me as I'll never be in a position where I can save for a deposit.

If they can afford to buy, well, good for them. BNO status is a direct legacy of our colonialism and I'm glad we're actively welcoming people to come to the UK. It's a refreshing change.

My thoughts exactly.

@Leafyhouse

Besides, who's to say Hong Kong property values aren't going to plummet?

With COVID-19 the prices still stable. But who knows in Q3/4.

Covid is only just getting going. It's far too say what will happen two, three, five years down the line.

I have been surprised in recent years at the anti-Cantonese sentiments I have seen online. Until very recent years most Chinese people settled in Britain were of Cantonese origin, indeed my best friend is British Born Chinese of Cantonese origin, and some of the venom I have seen against Cantonese traditions and practices has been eye-opening.

Apologies @laukuk it doesn't mean you are a mainlander, your posting style and some of your turns of phrase gave me that idea, is all.

Overall, no I don't think it'll make much difference to house prices here. I can't imagine large numbers of BNO will come and, given the economic disaster currently looming, we might actually be glad that there are people willing to put money in and keep things going.

lol I wish I am coming from mainland china. I know a few mainland china colleagues, at their 20s, coming from affluent family. They studied in private school here, and after graduated live in luxury apartments, driving Porsche, travelling around Europe over the weekends. Their salary as a fresh graduate can hardly support that. Their parents are willing to spend on these luxury things. Of course, the income gap is china is huge. Many are making less than 100 pounds per month.

Honestly, worked in Hong Kong for a while I know many friends there, I don't think mainland Chinese will against this bno policy. It's just the china government screwing things up.