With houses turning in sub-inflation growth, sellers should look at pricing their houses more realistically, while buyers are becoming increasingly more professional in their buying decisions.
Current high debt to disposable income levels place owners under pressure to service their mortgage obligations. The sector will remain stressed and the need to downscale will continue, especially where we have seen income and job losses.
09 July 2011
Saturday Open Thread: FNB - 'It's not getting better'
Welcome to the Saturday Open Thread. This weeks topic starter from FNB:
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6 comments:
Property deflation is not happening at a normal pace for a recession/depression.
It's definitely being manipulated as if someone is pulling on a hand brake.
Also, there are just a few low end Parklands/Sunningdale properties on sheriff auction.
Where are the leafy Newlands,Claremont,Rondebosch sheriff foreclosures on nice large family houses at bargain basement fire-sale prices ?
Are these larger family homes being deliberately kept off the sherrifs' books, or are there no foreclosures in these more desirable areas?
@Anon, I suspect you'll find that the vast majority of owners in the green-and-leafies own their properties outright or else have very small bonds. If you're waiting for Las Vegas or Detroit to happen in the wealthier CT suburbs, you're going to be waiting a long time.
In the McBurbs full of Tuscan McMansions, well, that's going to be another story...
I know a oke who sells leg cream to high-end salons and makes over R100k per month
"So what?" you say.
Well, that's what estate agents used to earn for doing f*ck-all during the great property bubble, and this oke at least adds some value
At first anon.
There are multi-million rand properties going up for sale.
Banks tend not to want properties to be sold at on auction by the sheriff as it is an expensive and time consuming process.
They first try and help the owner (well the borrower at least) to sell. Look at FNB quicksell as an example of this.
Although if it does go to auction the bank can always bid for it if it looks like it will go for less than they are owed on it and what they think they can get for it.
L.S.
A little off topic but someone posted a link a while back to get a free property valuation report online. It was the full monty similar to that from lightstone (except free). It could also do CMA (Comparative Market Analysis) as well.
Could you please post the link again I would be most grateful?
A bit off topic, but here is a hilarious illustration of the SA's media "objectivity". Here is moneyweb reporting on the manufacturing output growth:
Factory output growth quickens in May
And here is Business Day reporting on the same news:
Rate hike this year unlikely as factory output slows
It is the same number, 0.6%, but nobody seems to be sure whether it means the output slows or quickens. Bizarre.
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