Tuesday, 25 March 2008

Formula 1 & Real Estate in South Africa

With Raikkonens 16th win of his career and after watching Ferrari kick some serious rear in Malaysia this weekend I was hit by a sudden brain wave... The more people that support formula 1 and Ferrari specifically, the lower our cost of housing will become in the South African Property market...

This is how it works!

If more people start watching Formula 1 racing it's inevitable that more people will start supporting Ferrari... (With Ferrari being such a dominant force in racing today)

The more people that support Ferrari, the more people will start using Shell fuel

If more people use Shell fuel, Shell will become the dominant supplier of FUEL in South Africa.

In doing so they will become the controllers of the FUEL price and will most likely hike it up.

In hiking up our FUEL price the cost of living increases and so will inflation (South Africa hasn't quite learnt how to curb this)

With a hike in inflation they will have to increase the home loan interest rates.

HENCE the drop in the prices of housing!

Hope you all had a fabulous Easter Weekend... Enjoy your week.

WizardMan Out!


Anonymous said...

I think you got your name wrong its more like WizardMadMan just how much do you think prices will drop and how high the rate will be people will still not quailify due to affordability. We should try staying closer to work and ride bicycles there no expense on a vehicle and petrol. HEY AND WE CAN STILL SUPPORT FERRARI.

WizardMan said...

Thanks Mr VV. I take that as a compliment :-)... I just figured I'm so tired of reading the same news about interest rate hikes and boring boring property news that something like this will hopefully spur on some excitement on this BLOG. Maybe a little more, interaction ... And WE WILL SUPPORT FERRARI!

Anonymous said...

No not a complaint just wanna hear good news for the property market. I see CPI is creeping up to ten we are almost in the same spot as 2003just before the big property bang. Heeeee Ha its going to come and its going to come soon. Does the property market turn around in a 5 year cycle. I hope so this country of ours is ripe with investments and I have some good deals at the moment.

Mr vv

Anonymous said...

Mr VV what exactly do you do? 5 years cycle's been the trend over the last 20 years so lets see how your prediction goes!!!

Hey, a bang can be great for countries and personally (renting for a great price) I'm waiting for it!!