Property bargains beckon investors: expert
While the property market still faces headwinds via high household debt levels and rising unemployment, it maybe an ideal opportunity for property investors to enter the market locally and offshore, says Real Estate Investor Magazine CEO Neale Pietersen.
Addressing the Rode Conference on Wednesday in Sandton, he said the local property market is down 40% of its value compared with 2008 ie. before the global financial crisis.
He adds that he has noticed an increase in property auction sales this year compared with last year.
"There is a huge amount of good priced residential properties in the market right now for investors, with interest rates still low."
Property investors are also likely to benefit from listed and unlisted property, where yields are continuing to increase.
"Both listed and unlisted property market have yielded about 20% so far this year," he said.
These positive developments, Pietersen adds, have led to the re-emergence of property trading.
Pieterson points out that the main reason why local investors should consider offshore investment is the huge number of property foreclosures, particularly in the US, which was hit by the recession.
"The property environment is quite promising for investors in 2010 after the recent global downturn," he says.
Source: I-Net Bridge
Article by: Andries Mahlangu - www.eprop.co.za