Expert says buyers must think clearly during the current conditions
Don’t get carried away by the vastly improved investment climate now gripping the country, advises Keith Green of Park Village Auctions’ KwaZulu-Natal operations.
“Investors need to think deeply before making buying decisions. Their judgment should be based on reality rather than false perceptions, mass hysteria or overly euphoric reactions.
“Market optimists believe in the abilities of the new leadership with resultant currency appreciation and improving market segments. More cautious investors, on the other hand, feel the land expropriation issue raises major concerns for property ownership and is delicate enough to lead the country into turmoil if not sensitively, and decisively, dealt with once and for all.
“Where does this leave the investor? At the crossroads, frankly. It’s case of either wait and see what happens, or buy now while the markets are at the bottom of a cycle and take advantage as the wheel turns.Whatever the decision, make sure you select investments carefully and buy at the right price, and you will never go wrong.”
Green says the new political dispensation is bound to have a positive effect on the residential and business property market. “However, it will take some time to filter through. The consensus is that the market in 2018 will only grow by about 1%. This means the buyer’s market that has prevailed since 2016 will continue, fuelled by the fallout of the extended economic downturn, ratings agency downgrades, poor growth and lack of confidence in the market.”
This makes the current property climate an “auction market” with the benefits of auctions favouring both buyers and sellers. “Incorrectly priced properties remain on the market for protracted times and may even become stale, making them almost impossible to sell, whereas on auction the seller sets a minimum and the market dictates the eventual price. In these cases the price fetched is usually directly comparable to the real market price average.”
For more information, call Park Village Auctions on 0315125005 or see www.parkvillageauctions.co.za.