All Forum Posts by: Gerrit Oosthuizen

@Mitch Messer

Till now, the open market has been holding strong. This week has been the first week where open market prices started to adjust downward.

I recon within the next couple of month we would see a 30% discount on prices. Single family properties the some of the older neighborhoods have long been paid in full. But its the second mortgage that is getting people into trouble. I have seen clean properties being put on the market well below their expected min values.

The weakness in the Rand compared to the Dollar combined with the economic halt has pushed interest rates down with almost 20%. I think this will be short lived and investors should make provision for the lending rate to increase just as fast in the mid term future.

But the discount in property price should see a positive return, even if the market sharply recovers.

@Mitch Messer

The South African government has been implementing the same lockdown strategies as in the USA and other leading countries around the world.

South Africa has been on lockdown for over a month now. This means no economic movement for the entire month. People aren’t able to make payments on loans and some will not be able to return to work.

Foreclosures has a backlog and no properties that can not move forward to the sheriff auction stage.

On the other side of the market we have the open market (MLS) that is competing for a very small and very scared buyers pool.

Once lockdown is lifted and economic movement starts to get back into action, all the foreclosures will swiftly be moved to auction stage as banks try to recover as much as they can.

Flooding the market with very inexpensive below market property will expose all brave investors (experienced and novices) to amazing buying opportunities.

I have see movement in the middle and lower class housing as the norm, but as of late, multiple units catering for the very elite upper end of the market has also fallen under the hammer during this time.

Covid19 is affecting everybody in every income class in South Africa.

Make your wish lists, have your offer to purchase documents ready and invest wisely.

@Mitch Messer would you say things look the same in your local market?

The South African property market is ripe for the picking.

Let me know what and where do you think is the most promising opportunities for the remainder of 2020?