Where is Edinburgh’s Malmö?
If Scotland were to vote for independence, would Edinburgh’s workers commute from England in the same way that Danes commute to Copenhagen from Malmö, in Sweden? And if so, where might that be?
I wrote here a few weeks ago that there might be a tiny consolation prize for the well off from Scottish independence. The huge influx of lobbyists and pointless politicians into the new nation's capital would mean that Edinburgh house prices would soar. So anyone with a nice Georgian townhouse in the centre of the city would at least be quids in on their house, if not on their tax bill.
However, several of you wrote in to say that you wouldn't be so sure. Much of the financial industry would be likely to up sticks and head south post-referendum in order to avoid falling foul of the endless regulatory problems that might come with cross border sales (you can't sell life assurance cross border, for example).
So there would be at least as many smart houses for sale as there might be in demand particularly if the SNP stayed in government and followed through on its land tax threats.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
These are all good points, and it is true that the financial companies in Scotland are not short of exit plans. Shame.
On the plus side, that does mean that those of you who insist on betting on property prices going up in one place or another might take a look at some of the places on the southern side of the border places where those who might negotiate working in Scotland for only a few days a week, and who want to keep their affairs English, might fancy living.
The average numbers for house prices in the UK don't tell us much in the way of regional truths, but in many parts of the north there has been a genuine property crash readers have written in to tell me of prices down 40% plus in much of Northumberland, for example.
The Independent on Sunday picked up this idea at the weekend with Clive Aslet suggesting that Scots might head for these areas in much the same way that the French have reacted to high taxes there with an "exodus into the promised land of Belgium."
I like to see it a bit more like Denmark and Sweden high land taxes in Denmark mean that a good many of the people who work in Copenhagen actually live in Malm.
So where is Edinburgh's Malm? It could be Berwick, which is a mere 45 minutes from Edinburgh by train and which, from the window of said train at least, looks quite nice. There you can get a nice detached Georgian townhouse with four bedrooms for a mere £300,000. You don't get that in Edinburgh.
If you have more to spend, £800,000 will get you this rather splendid mansion.
And if you have rather less, you can have this delightful little cottage for under £200,000. I'm not convinced that doing this will make your fortune (don't forget that interest rates can rise as well as fall ) but if you are Scottish and scared, it wouldn't be a bad way to hedge your bets for 2014.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).
After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times
Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast - but still writes for Moneyweek monthly.
Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.
-
How to boost your pension by £33,000 by paying it an annual Christmas bonus
Contributing an extra £400 into your pension pot this festive period will give the gift of compound interest and should make your retirement feel more jolly and bright
By Ruth Emery Published
-
Japan’s medium-sized stocks provide shelter from trade wars
Nicholas Price, portfolio manager of Fidelity Japan Trust, tells us where to invest in Japan
By Nicholas Price Published
-
House prices to crash? Your house may still be making you money, but not for much longer
Opinion If you’re relying on your property to fund your pension, you may have to think again. But, says Merryn Somerset Webb, if house prices start to fall there may be a silver lining.
By Merryn Somerset Webb Published
-
Prepare your portfolio for recession
Opinion A recession is looking increasingly likely. Add in a bear market and soaring inflation, and things are going to get very complicated for investors, says Merryn Somerset Webb.
By Merryn Somerset Webb Published
-
Investing for income? Here are six investment trusts to buy now
Opinion For many savers and investors, income is getting hard to find. But it's not impossible to find, says Merryn Somerset Webb. Here, she picks six investment trusts that are currently yielding more than 4%.
By Merryn Somerset Webb Published
-
Stories are great – but investors should stick to reality
Opinion Everybody loves a story – and investors are no exception. But it’s easy to get carried away, says Merryn Somerset Webb, and forget the underlying truth of the market.
By Merryn Somerset Webb Published
-
Everything is collapsing at once – here’s what to do about it
Opinion Equity and bond markets are crashing, while inflation destroys the value of cash. Merryn Somerset Webb looks at where investors can turn to protect their wealth.
By Merryn Somerset Webb Published
-
Value is starting to emerge in the markets
Opinion If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy traditionally expensive growth stocks on the cheap, too.
By Merryn Somerset Webb Published
-
ESG investing could end up being a classic mistake
Opinion ESG investing has been embraced with enormous speed and zeal. But think long and hard before buying in, says Merryn Somerset Webb.
By Merryn Somerset Webb Published
-
UK house prices will fall – but not for a few years
Opinion UK house prices look out of reach for many. But the truth is that British property is surprisingly affordable, says Merryn Somerset Webb. Prices will fall at some point – but not yet.
By Merryn Somerset Webb Published