Since 2007 I have seen major changes in the residential property market in South Africa. From the National Credit Act hitting the buyers in the same time as consistent increase in interest rates all the way to Dec-07, to oil prices and right now the residential market has come to a halt. That is not good news for residential home selling agents, but I can't say the same for investors. I have seen investors since mid last year jump with joy.

All in summary I have never seen a better time in the last 4 years to invest in residential property. That may sound a bit counter intuitive to some that invest in capital growth, but now investors are finding deals easier by the day.

Distressed sellers are by the plenty, buyers are far less than before and negotiations are far easier. If you ever had problem with your negotiation skills always try to invest in a downturn, negotiations are easy and far less skill is necessary.

Yes, I know this is not exactly a good time to buy for growth and don’t expect to sell that property in the next 6 months easy. Unless of course you invest in some emerging areas..... more about that later.

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Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved.