From London comes a story about a “prison-cell” sized studio apartment of just 7.1 square meters – hardly big enough to “swing a cat” – and the price…
… wait for it…
… a cool ₤170,000 UK.
At more than ₤23,500UK per square meter, this sleeping bag sized “property” is within walking distance of Harrods Department Store and Hyde Park.
The address of this former maid’s room is basement, 18 Cadogan Place, Knightsbridge. It has a tiny “coffin sized” shower, two small hot plates, two small windows, no electricity and no heating. “Welcome to luxury.”
Real estate agent Andrew Scott says” “it is an investment.”
The sale of this dark, mildewy, dilapidated and rubbish strewn small room shows clearly the astronomical rise in property values across London.
Over the past year property prices have risen between 22.4% and 68.1% across the London area.
An “average” property will now set you back ₤356,000 UK. Property values have boomed despite rising costs and stagnant salaries.
Similar massive increases are being experienced in many other major cities like New York, Hong Kong and Tokyo. Even in smaller cities like Sydney and Perth, Australia the property prices have soared.
Of the Cadogan Place flat, Andrew Scott, intrepid Real Estate Salesman says: “the property size is in the eye of the beholder.” Then he offers this little gem of wisdom: “if you thought of this as the cabin on a boat, you’d say it’s pretty spacious.” Well, Andrew, it’s NOT on a boat.
Moral to this story? Property is a good investment. It has been for over 1000 years and it shows no sign to the contrary. Quite the opposite, in fact.
Owning property, in my opinion, is creating wealth through stealth. Brilliant huh?