Getting Started

How to get started in property investing with no money and a low income salary.

Get your FREE e-book now

Bad Tenants

11 Ways to avoid a bad tenant or worse a squatter.

Get your free e-book now


Need real estate FREE documents?

Legal documents, analysis tools, application forms, NCA forms and more.

Click here to get documents FREE


Sean Wheller
Jan 20 2008
Growing on Mid and Upper Market Pressure
Sunday, 20 January 2008

As the shine on the property market dulls amid concerns for rising interest rates that have come close on the back of a new national credit act, many people are losing interest in property. Personally I think this is great news as it is giving sellers more of a hard time selling their property and placing over exposed investors under pressure to keep financing their increasing shortfalls on their bad buys.

It's great news for property investors who have paced themselves and not been sucked into the fever and hype of the South African property boom. Pressure on the market has been building for sometime and we have, for a few months now, started to see seller become more flexible at the bargaining table. In some areas we've noticed that average asking prices have actually decreased. Doing some back referencing, we've seen that these area's have been under pressure for near a year.

It's all good for cash-flow investors who see the equity growth component of property as just a bonus for long term financing. Increased prices, new national credit act and high interest rates are resulting in rental prices playing catchup. One of our rentals was recently advertised and we had 72 respondents in 2-days. This either means we're asking to little or there is a demand that's out stripping supply.

Either way, bargains are starting to appear more frequently now, even in middle and upper market areas. I still think the best deals are to be had in the lower end of the market, but as pressure continue to grow, its worthwhile keep one eye on the mid and upper markets.

I'm getting more people contact me via Repossession Stopper to help rescue them from impending repossession. Most of them are beyond help, having refinanced their properties late in the boom and used the money to live on or acquire liabilities. Some of these things just don't make sense. For example, most seem willing to face repo instead of accepting an fer that is 30% less than the market value of their property. People are so frightened of admitting they are in a losing position and yet remain defiant and indignant that they will get their price.

Naturally, I can't help such people. There are those that do understand that I'm offering them a way out of serious and extended ramifications to their credit profile and financial future. These people I've been able to help by acquiring their property using a variety of methods. It's a win, win situation. I get to buy a great piece of real estate at a discounted price and the seller gets to avert insolvency. Fair trade you would think, but you'd be surprise just how many people think otherwise.

Add NewSearchRSS
Write comment
[b] [i] [u] [url] [quote] [code] [img] 
Security Image
Please input the anti-spam code that you can read in the image.

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

Digg!Reddit!!Google!Live!Facebook!Slashdot!Netscape!Technorati!StumbleUpon!Newsvine!Furl!Yahoo!Ma.gnolia!Free social bookmarking plugins and extensions for Joomla! websites!
< Prev   Next >