25 September 2011

Mandela Rhodes Place Liquidated

When we first wrote about Mandela Rhodes Pace back in February 2007, it was literally underwater.

Then in July 2011 we heard that even though it had been completed years earlier it was still releasing unsold apartments onto the market.

And now, it's being liquidated with supposedly 62(!) unsold apartments hitting the market. If you bought into MRP and are trying to sell... my condolences.

10 comments:

CJ Says said...

Where are we ?

I see he US bubble chart has done exactly what it should do - the huge soaring boom graph reversed and dived with equal velocity. The pain is not over, but in the words of Churchill, it could be the beginning of the end.

The UK, SA and Australia haven't even started to bite the bullet yet, so their real pain is still to come.

There goes the SA currency. 25% collapse - that means 25% increases in import prices on the way, including fuel.

So inflation will soar even further - it will be harder to keep pretending it's only around 6%.

Soaring inflation will get those bond rates moving up. Which will leave the debt crippled public hurting more.

Forced house sales will accelerate (see article) driving prices down - we will trigger the "fear" stage of the crash when panic sets in.

SA will bottom about 3 years after the US bottoms - they have another year or 2 to go - so SA is in for some tough years.

But the good news at the end of it will be that SA houses will be at affordable prices again - of course, whether interest rates will be affordable to buy them, that is another debate altogether.

Zed Saldanha said...

You forgot CJ that this isn't your usual recession. We're 3 years into the 2nd Great Depression (aka the Greatest Depression, D2, whatever). The last one ended with WW2 even though resources of every kind were still plentiful. How will this this one end? In five years? Will we all just pick up where we left off and start building golf estates on the garden route again, driving the X6 to drop off the kids at gymkhana?

I think not, my china.

Zed Saldanha said...

On the plus side: You were right and the bubble boosters were wrong. The feeling of righteousness one gets from plotting the truth where everyone around you was blinded is worth at least a million bucks IMHO.

CJ Says said...

I agree Benny - who knows where it will end ... the US is bankrupt ... Europe is bankrupt ... China has money so they will probably just buy up the world's mines and industries ... and when countries realise they have been colonised by stealth, any resistance will be crushed by China's war machine.

A new super power will emerge. Africa will be ripe for the taking. And without the US as a global policeman, who is going to stop China making a move on any third world country it needs.

Sucker Jack said...

*sigh* ... while the western world's flawed financial system is in trouble, I just find it odd that the prophets of doom don't act so diligently on what they apparently know to be the outcome. Honestly, if I knew the future and felt so deeply about my knowledge to go as far as to regurgitate it endlessly on blogs and news sites; surely you would be acting differently? Personally if I was 100% WW3 was on its way I would be stocking up on canned foods, candles and ammo, along with ensuring a location for my family is in place while I prepare for war. Weird how these people post on blogs about imminent war, yet continue to check their stock dividends and reference sites that pursue knowledge on the price of property in Cape Town.

Zed Saldanha said...

@ Sucker Jack

WW3, if it happens, will last about two weeks (up from 45 mins thirty years ago) and would be unlikely to have a front anywhere near SA. But I hear you. The ones you should be asking that question to are the ppl that go on and on about how the country is going to turn into Zimbabwe or be the setting for the last great anti-colonial massacre. Ask them why they aren't packing. As for myself, nowhere else will have me and things are never bad all over. There are plenty of fat, rich whites sipping G&Ts and committing light adultery without a care in the world around the pool in Harare as I type this.

Paul said...

CanTo the blog owner:

Could you put me in touch with CJ please? I'm a writer and would like to write a book about the coming collapse that warns people. I like CJ's facts and chart analysis etc.

Stephan Delport said...

MRP is actually a successful hotel and a great development. The liquidation is the result of the developer, West City/Eurocape, having been financed by Anglo Irish Bank which is now insolvent as a result of the financial crisis and also as a result of its own irresponsible lending practices. For its part, Eurocape relied on cheap money from Europe and is now bust, taking tenant's deposits and other funds down with it. On the plus side, you can now buy a great apartment in the most beautiful part of Cape Town's CBD for a great price, I would go for it.

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