Why Buy Property in an Economic Recession?
There is arguably no better time to buy property than during an economic recession as banks and other financial institutions are repossessing 'distressed' property at a rate of knots.
As long as you are cash flush, the current property market presents fantastic opportunities for the astute buyer and investor.
When there is inordinate greed in any market, be it the property market or the JSE, it is wise to be fearful, but when there is fear in the market you should take a tip from Warren Buffett, one of the richest men in the world, and be greedy! Insolvencies and liquidations on the rise Recent statistics have revealed that the number of insolvencies and liquidations are set to spike and with less money and a lot less job security around, the negative sentiment presents unparalleled opportunities for those who are not at the mercy of banks.
Interestingly, more expensive properties are now being repossessed - an indication that the recession is clobbering all segments of the market - which presents great value for prospective buyers in the top end of the market .
Clifton property, Llandudno property and Camps Bay property are all going at a global 'steal'.
Although South Africa is very much part of the global economy, and indications are that we are not quite going to escape the latest market debacle unscathed, there are several mitigating factors for the local economy that may well salve some of the gaping wounds caused by the fiscal impropriety in the first world economies.
Government spending will increase value The government's commitment to infrastructure spending for the FIFA 2010 World Cup means that there will be a massive demand for property in the surrounding areas, which in turn will lead to an increase in the value of property close to the stadiums or the newly conceived BRT (Bus Rapid Transit) system.
South Africa boasts the fastest growing middle-class on the planet and, together with a free and fair election in April, many predict a boom in property prices by as early as next year.
If Hout Bay property with sweeping views of the bay is your dream or you're seduced by the idea of beach front living, now is the time to bite the bullet and commit to property - it will always be an outstanding asset in any well balanced financial portfolio.
As long as you are cash flush, the current property market presents fantastic opportunities for the astute buyer and investor.
When there is inordinate greed in any market, be it the property market or the JSE, it is wise to be fearful, but when there is fear in the market you should take a tip from Warren Buffett, one of the richest men in the world, and be greedy! Insolvencies and liquidations on the rise Recent statistics have revealed that the number of insolvencies and liquidations are set to spike and with less money and a lot less job security around, the negative sentiment presents unparalleled opportunities for those who are not at the mercy of banks.
Interestingly, more expensive properties are now being repossessed - an indication that the recession is clobbering all segments of the market - which presents great value for prospective buyers in the top end of the market .
Clifton property, Llandudno property and Camps Bay property are all going at a global 'steal'.
Although South Africa is very much part of the global economy, and indications are that we are not quite going to escape the latest market debacle unscathed, there are several mitigating factors for the local economy that may well salve some of the gaping wounds caused by the fiscal impropriety in the first world economies.
Government spending will increase value The government's commitment to infrastructure spending for the FIFA 2010 World Cup means that there will be a massive demand for property in the surrounding areas, which in turn will lead to an increase in the value of property close to the stadiums or the newly conceived BRT (Bus Rapid Transit) system.
South Africa boasts the fastest growing middle-class on the planet and, together with a free and fair election in April, many predict a boom in property prices by as early as next year.
If Hout Bay property with sweeping views of the bay is your dream or you're seduced by the idea of beach front living, now is the time to bite the bullet and commit to property - it will always be an outstanding asset in any well balanced financial portfolio.
