Two of the biggest cities on the globe have always been struggling to one-up one another, even if they are not doing so intentionally. London was a global hub first but New York City has quickly met and surpassed the home of Buckingham Palace, the Eye, and Big Ben. Still even as both cities compete on distinct stages for the title of most recognized city in the world there are some things which really unite rather than divide them. One of these is the real estate in both places; the demand and the costs have stayed right up there. But which is the better spot for real estate investing for you?
Real Estate Investments: Comparing London to New York: Prices
New York City has kind of always been the place for real estate investing. The thing about New York City which sort of sets it apart from anywhere else is that the space is finite. Urban areas that are on the mainland can just sort of keep sprawling outward like Los Angeles. But London has really always maintained a good senses of local identity. That has worked in its favor for keeping the home prices in London not just strong but competitively so. Knightsbridge and Mayfair are both areas in London where the home prices continue to be hot. Prices rose last year in those 2 neighborhoods a purported 7.5%. New York City home prices have continued to rise commensurate with rates like those in London.
Real Estate Investments: Comparing London to New York: Deeper
One thing that makes London such a strong place for investing in real estate is that things never get as bad as they are rumored to one day be. Still London is interested in levying some pretty strong taxes which many homeowners and luxury residence dwellers will find pretty alarming. Local government is looking to increase capital gains taxes up some 18-28%. That is a lot for the very wealthy who are looking to make London their home. Still New York has remained competitive in the fact that there is a fairly low tax when compared with London housing.
Real Estate Investments: Comparing London to New York: Buildings
Many of the buildings in both London and New York are on the older side of things. But London’s buildings are increasingly stodgier than many of the buildings in New York City. The thing about New York buildings is that so many of them are constantly being renovated and re-updated to fit with the then modern temperament. Of course it’s not really fair to say that London, a city whose history dates back more than 2000 years, has an older infrastructure than New York whose history only goes back a couple of hundred years, at least in its current formation it could be argued that New York City wasn’t really the city it is today until 1811 when the grid plans were drawn up.
Real Estate Investments: Comparing London to New York: Needs
At the end of the day it really comes down to the individual needs of the purchaser. New York and London are both commercial and financial epicenters; but where are you doing most of your business? Where do you want your future to be? Where will you see yourself finding your greatest success? Once you answer those questions then you can begin to decide which city would be a better investment for your real estate dollar.
New York City and London are both capital cities in every way. Both offer much and your local broker at Prestige International can help you find your way.