He says that a key risk, “ironically”, to South Africa’s residential property market lies in an economic scenario that could include interest rates declining.Well let's see in the US so far there are over 60 mortgage financers that have gone out of business and still over a trillion dollars of subprime mortgages have yet to reset. Looks like that major collapse is on the way then.
This risk “emanates from the troubled US housing market which, if it experiences a major collapse, could throw our global ‘soft landing’ base case forecast out and sent the world economy towards recession”.
07 May 2007
If US Crashes, Low Interest Rates Won't Save SA
FNB Economist John Loos has gone into CYA (that's 'check your ass') mode. He claims that the SA property market is fine. However on the off chance the US property market craters then not even cutting interest rates will save SA.
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A freaky statistic for you... There are over 10 000 companies that do mortageg financing in South Africa. They've got major problems. If you're looking for a really really good US real estate property BLOG take a look at http://slcrealestate.blogspot.com/
Oops.. I meant 10 000 companies that do mortgage financing in the US. heheh... In South Africa, there's only one Wizard midrand ;-)
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