Studio Flats London

The hikes in UK property prices in the last decade has had many in the property industry reeling. Having defied expectations on a number of levels, the strength of house price increases has many pundits at a loss as to where the property market will go next. For instance, while some predict continued growth, others claim that the property market is likely to see a slow period during the last half of 2007.

However, a recent study by leading property site Home.co.uk has found that one community of property owners has benefited from the steep house price increases of recent years – homeowners in London. Despite the four rises in the Bank of England interest rate since August last year, London property prices have seen no sign of slowing down their skyward ascent. In fact, Home.co.uk’s latest Asking Price Index report infers that the average property for sale in London now carries a staggering price tag of £336, 900.

And while this news will not be favourable for first-time buyers hoping to get a foothold in the property market in London, the rising value of London homes is likely to please many existing homeowners with properties in the capital. Moreover, this phenomenal growth has stood London homeowners in good stead when it comes to borrowing, as the breathtaking levels of property inflation means it’s easier for them to find attractive secured loans.

A secured loan is a financial arrangement in which the borrower promises an asset – like a house or a car – as effective collateral against the loan in question. Essentially, the loan is ’secured’ against the asset so, in the event of defaults in payment, the lender can take possession of the collateral and may sell it on in order to regain the amount of money originally lent to the borrower.

Secured loans which use property as collateral are also known as mortgage loans and, as the price of houses for sale in London continues to skyrocket, secured loans are becoming increasingly popular with homeowners in London. The high value of London property means that secured loan lenders are able to offer lower rates of interest to London homeowners than might be available through unsecured loans – a factor that is sure to appeal to homeowners who are keen to release some cash to make essential refurbishments to their house, or simply to reduce their monthly mortgage repayments.

What’s more, finding secured loans has never been easier. London homeowners keen to take advantage of their rising house value will be able to find a range of financial sources online that allows consumers to compare secured loans across the UK loan spectrum. If you own property in London, using these simple tools will make it easier for you to find the secured loan that best meets your personal circumstances – while at the same time helping you make the most of your valuable asset while the time is right!

The mayor of Chicago is a 31-year-old microbiologist who lives in Canada and probably could not tell a political machine from a soda machine. He does collect taxes, however, and would flip the Second City for the right price. So who does this guy think he is, Richard M. Daley? “I guess he’s someone in Chicago?” said Andy Jonson, who holds the deed to the City That Works within new online social networking site Weblo.com. “I’m just learning about this stuff.”

Launched last October by an Internet gaming entrepreneur and funded to the tune of $2.6 million, Montreal-based Weblo is part MySpace, part Second Life and perhaps part tulip craze. The company makes money by selling virtual plots of land — including municipalities, landmarks and ordinary addresses — to willing buyers who purchase the intellectual property for reasons both speculative and nostalgic. Andy Jonson paid nearly $150 for Chicago, but has since earned a few pennies a day while collecting taxes from the property owners who acquired virtual rights to the Sears Tower, Wrigley Field and other local institutions. He also gets a cut of any ad revenue circulated through his cities, which include San Francisco, London and Paris.

“I’m sort of playing it like any other investment,” he said. “I’ve managed to resell some properties, and so far this is doing better than my mutual funds.”

According to sales data supplied by the company, Weblo property owners are making tangible profits from their virtual assets. The state of California sold for $53,000 after it was initially purchased from Weblo for approximately $37,000 only months earlier. Illinois is listed for more than $17,000. As of Jan. 31, more than 5,200 cities have been purchased worldwide.

Weblo founder and CEO Rocky Mizra said that nearly a decade ago he conceived the idea of assigning real ownership to virtual properties that are based on actual addresses. Until recently, however, Mizra focused on Web site consulting, buying and selling domain names, and running a gambling business at iBetX.com. As sites like MySpace and Facebook started turning heads, Mizra contemplated how social networks with exorbitant traffic could more efficiently make money from and for their members.

“I’m used to having a revenue model right from the onset,” said Mizra, 34. “Until now, the only thing you can accumulate on social networking is fame. Where Weblo comes in is the commerce part of it.”

Weblo’s investors include former MySpace Chairman Richard Rosenblatt and Fred Harmon, a managing partner with Silicon Valley venture firm Oak Investment Partners.

Mizra said the company employs approximately 120 developers in India and Pakistan to codify his bizarro reality as well as other ventures. In addition to loading up on real estate, Weblo members can purchase rights to celebrities ranging from Brian Urlacher to Jennifer Lopez. They can also create their own profiles.

While sites such as Weblo and Second Life, which now has more than 3.6 million members, are not my cup of tea, the economies that develop within them warrant attention. Over one 24-hour period last week, more than $1 million was generated through Second Life. On Weblo, in addition to resale opportunities, members are financially motivated through advertising commissions to their expand networks and presence on the site.

“If you have 10,000 friends [on your profiles], then money is being made, and you take a cut of it,” Mizra said.