Bankers in London are spending less than usual on real estate, according to a new report.
Real estate brokers say the change is because of the new pay structure, which pays London bankers less in cash and more in shares.
So even though London bankers received an estimated total of £14 billion in bonuses last year, it’s not “liquid” cash.
For example, with a £1 million bonus, many bankers would only receive £166,000 in cash with the rest being taken out in tax or given in shares.
So they’re not buying expensive homes, Property Wire reported.
Instead, bankers are opting to buy more modest homes, according to Sourcing Property– a property search firm that acts for many banking clients.
Of course property near London is expensive, but what’s modest for bankers is a dream home for most people.
Here’s what they’re spending and where they’re living:
- Male bankers in their early 30s are either buying for themselves or with a girlfriend, while female clients are usually single and purchasing for themselves.
- The budgets for those in their early 30s tend to be around $1.5 million to $2.1 million for a two bedroom, two bathroom flat.
- Bankers in their mid-30s and early 40s usually spend around $3.2 million to $5.7 million.
- Popular banker neighborhoods are Chelsea, South Kensington and Notting Hill.