Higher inflation good for property - and Zuma presidency could lead to better delivery by public service bodies - which will also benefit property
| In a statement some weeks ago Bill Rawson, Chairman of
Rawson Properties, said that, as he sees it, the residential property
market in SA had bottomed out and is now on a slow but clearly discernible
The recent deposing of President Mbeki has, said Rawson, surprisingly caused only a momentary halt in propertys recovery and it now continues as before.
All in all, I think the whole handover has been well handled, said Rawson. The public for a few days held back on property activity but the signs now point to confidence already being regained. Sales in the Rawson Group this September will be significantly up on those of last year.
The public perception, said Rawson, is that a Zuma presidency will face the challenges of reducing poverty and increasing jobs more determinedly and will be more effective in getting public departments to use the funds available to them. This will free up the economy and help the bottom 20% on the wage scale.
It is particularly good news that unless there is another radical decision change, of which we have not yet been told, Trevor Manuel will stay on as Finance Minister and the successful fiscal policies of the Mbeki era will be maintained, said Rawson. The impression given is that although Zuma (faced with massive new expectations) will have to spread SAs wealth more evenly, he will not be allowed to be irresponsible in these matters.
Inflation, says Rawson, could rise to 14%. This will help house prices rise and make property investment more popular.
Buyers are now learning to operate within the far stricter parameters of the National Credit Act and may have to accept that the sort of home they aspired to owning in 2007 is probably beyond their reach in 2008 but the man in the street still sees property as a good investment, said Rawson. He must now recognise that he will have to reduce his expectations and save harder to get it but, at all costs, please do not give up your property owning ambitions.
Article by: www.rawsonproperties.com