We never got much time this week to post stories. So if you've got something you want to discuss, this is the thread for you.
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Anonymous
said...
From Property24 on Friday: Lew Geffen tells sellers to "take the money and run"
If you must sell your home, sell it now as the market is not going to improve for at least another year.
That's the word from Lew Geffen, chairman of Sotheby's International Realty in SA, who says that homeowners who really have to sell at this stage should "take the money and run" if they get a serious offer of any kind. "They should definitely not hold out in the hope of higher offers in the next few months as the market is going to get worse before it gets better.
"It is also not advisable for owners who have to move to try to let their existing homes now and delay the sale in the hope that prices will rise significantly over the next year. For a start, rentals are under pressure at the moment because there is an excess of stock and tenants are bargain hunting, so whatever rental income it might be possible to generate is highly unlikely to cover the mounting holding costs on the property.
"Second, home prices have now started to show a decline even in nominal terms and are set to go through a further dip before any interest rate drops start to have an upwards effect. It takes nine months for changes in interest rates to kick in, so the likelihood is that prices will not be much higher at this time next year than they are now."
What South Africans dont seem to get and are totally uninterested in, is that the world is fast heading for a depression. Our national bird is definitely the ostrich. The question in SA is not whether our banks are unaffected by the mortgage crisis overseas but a massive slowdown in global growth. Our largest exports are precious and semi precious stones, platinum and metals etc and our largest trading partners are the States, Germany, Japan etc. All these countries are in recession, vehicle manufacturers are reeling, construction has fallen off a cliff etc. Worldwide there is a massive property bubble bursting. To consider that property here will bottom out next year and then increase in 2010 because of a couple of football matches is ridiculous to say the least.
3 comments:
From Property24 on Friday: Lew Geffen tells sellers to "take the money and run"
If you must sell your home, sell it now as the market is not going to improve for at least another year.
That's the word from Lew Geffen, chairman of Sotheby's International Realty in SA, who says that homeowners who really have to sell at this stage should "take the money and run" if they get a serious offer of any kind. "They should definitely not hold out in the hope of higher offers in the next few months as the market is going to get worse before it gets better.
"It is also not advisable for owners who have to move to try to let their existing homes now and delay the sale in the hope that prices will rise significantly over the next year. For a start, rentals are under pressure at the moment because there is an excess of stock and tenants are bargain hunting, so whatever rental income it might be possible to generate is highly unlikely to cover the mounting holding costs on the property.
"Second, home prices have now started to show a decline even in nominal terms and are set to go through a further dip before any interest rate drops start to have an upwards effect. It takes nine months for changes in interest rates to kick in, so the likelihood is that prices will not be much higher at this time next year than they are now."
What South Africans dont seem to get and are totally uninterested in, is that the world is fast heading for a depression. Our national bird is definitely the ostrich. The question in SA is not whether our banks are unaffected by the mortgage crisis overseas but a massive slowdown in global growth. Our largest exports are precious and semi precious stones, platinum and metals etc and our largest trading partners are the States, Germany, Japan etc. All these countries are in recession, vehicle manufacturers are reeling, construction has fallen off a cliff etc. Worldwide there is a massive property bubble bursting. To consider that property here will bottom out next year and then increase in 2010 because of a couple of football matches is ridiculous to say the least.
I agree... too much emphasis is being put on 2010!!! Most people with any expectations will undoubtedly be disappointed!!!
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