04 October 2007
Property Price Growth: Less Than Cash
Standard Bank reported (via RealEstateWeb) property price inflation was 5.7% year on year. That's less than cash. That kind of growth is a death knell to speculators. They're relying on double digit inflation to make up for their horrendous rental returns, which in most cases for newly bought flats is cash flow negative before taxes, maintenance and vacancy.
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I'm starting to put more and more faith into Standard Bank's property gauge, seemingly the only one willing to tell it like it is. The journo's still manage to "interpret" the facts out of it sometimes though, so for the unedited version, days before other sites get it, try:
Standard Bank research portal
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