Why Russian Youngsters are Becoming Home Owners in Europe
Super rich Russians are not the only ones buying up a storm in Europe, they also are getting their teenagers into the swing of things from an early age. Wealthy Russians from as young as 16 are taking the property buying plunge in cities like London and Paris.
Russia vs. China
The London real estate market has seen an influx of foreign property investors in the past few years. As much as 15% of London property purchases are made by investors from Russia and China.
Super rich Chinese people scoop up London properties for investment reasons and tend to spend around 70% of their liquid assets on expensive real estate. This spreads the risk and maximises capital gains. Russians, on the other hand, are more inclined to focus on lifestyle and status. The fact that it is not possible for London to expand like Dubai, makes it an exclusive choice and thus even more attractive to the Russians. According to top global property experts, the super rich Russians are ’empowering’ their youngsters with property purchases from a young age with the aim of keeping their wealth in the confines of the family unit.
It is not Only to Keep the Wealth in the Family
Known for their ostentatious lifestyles, it is not surprising that the Russian elite spoil their offspring with lavish gifts like high-class flats and houses. Besides the sheer pleasure of buying for the sheer pleasure of it, Russia has experienced decades of political instability, and it is no wonder Russians are looking at other countries for much needed steadiness. Yet another reason for the increase in property sales to young Russians is that the older generation is hoping to secure a space for their offspring as the next generation of money-makers. The numbers are not disputing this. Over 20% of properties sold in London the final half of 2014 priced at over £10 million were purchased by Russians, a portion of this to young Russians.