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#ZumaVote: What do the headlines mean for your property?

8 August 2017 | Insights Team

Junk status. #GuptaLeaks. The recession. No Confidence vote. What do these headlines mean for your property investment?

With the constant up and downs of the SA political landscape, it’s difficult to know what this means to us, the ordinary SA citizen. In this climate, where everyone is feeling the pressure of the economic downturn, you might think that putting your home on the market is a ridiculous idea.

But is it really?

First things first: Take a deep breath. Maybe take several long, slow breaths. The present moment may seem overwhelming, but the last thing you want to do is to make rash decisions that cause you to miss out on opportunities – which certainly still are aplenty. Remember, the trends in the residential property market are driven by buyers and sellers making long-term decisions, and not by speculators looking to buy low today and sell high tomorrow. These long-term decisions about career, family and retirement planning are less sensitive to political turmoil and economic downturns.

Yes, we are in an economic recession and while growth in areas is slower than previously, what we are seeing in the data is that activity remains strong and prices competitive. Several factors are behind this . . . the country’s young and urbanising population, the possibility of an interest rate cut later in the year or early next, the stronger rand.

All of this has seen to it that the vast majority of properties on the market are still selling for more than they were purchased for, even as the growth in house prices has tapered off. This is why it is vital to get the maximum return if you do decide to sell today.

Leadhome uses innovative technology and expert agents to streamline the business process and lower costs. In a slow economy, this is a huge advantage!

This post has been edited to accurately reflect our current business model.

Insights Team

We're the "thinking arm" of Leadhome, combining expertise in data analysis, modelling, sociology, geography, and philosophy to interrogate current trends in the South African residential property market. Proudly contemplative since 2015.

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