Shoeshine Boys

A popular story in American business folklore centers on a wealthy investor (supposedly Joseph Kennedy) in the booming American market in the 1920's who was getting his shoes cleaned when the shoeshine boy described his stock portfolio and began giving him investment tips. He went straight back to his office sold all his shares and 6 months later the 1927 stock crash hit. The moral of the story is that there are people out there who really shouldn't be investing and when they are it's time to get concerned.

The same thing is true in the property market. In the past 3 years anyone with a pulse could put 10% down on a pre-construction apartment and 18 months later when it's completed sell it for a profit. Those days are coming to an end. If you're going to make money in the upcoming market you need to know what you're doing. And this person doesn't:

CENTURY CITY Island Club, 3 beds, fully en suite R12 000 unfurn. Occup
immed. % 021-XXX XXX (CAPE ARGUS - 11/05/2006)

R12 000 for an 3 bedroom unfurnished flat? In Century City? I think someone's stuggling to make that mortage payment. Let's see what R12 000 gets you elsewhere:

CAMPS BAY luxury 3 1/2 bedr, 2 1/2bathr, braai, rim pool, garage, views
and balconies, R12700 082XXXXXX (CAPE ARGUS - 11/05/2006)

So you can have a flat in Century City (along with a 30 minute commute to town) or a house in Camps Bay. Decisions, decisions...