So with tonight being the last night of 2008 it's time for the SA Property Market 2008 prediction :)... Sounds like fun, lets see how accurate we are. For those of you sitting at home waiting for some new BLOG posts, lets hope this keeps you somewhat, entertained.
Roundup of 2007
There's been some major changes and impacts in the South African Property market over the last 12 months. We've seen the rise and fall of some of South Africa's supposed fraudulent bond originators especially the story of Rudco Finance which the SA Property Team followed extremely closely. I just want to say though, that it's great to finally see South Africans standing up for their finances. It seems gone the days where fraudsters would just walk over us. A good positive to take into 2008.
Of course, who could forget the introduction of South Africa's National Credit Act. This amazing introduction by the government and financial lending boards has brought a stop to the reckless lending of credit. There was a stage when South Africans were in such financial debt, and didn't realise it. Well, we do know. And financing your property is no longer as easy as filling in a form.
Roundup of 2007
There's been some major changes and impacts in the South African Property market over the last 12 months. We've seen the rise and fall of some of South Africa's supposed fraudulent bond originators especially the story of Rudco Finance which the SA Property Team followed extremely closely. I just want to say though, that it's great to finally see South Africans standing up for their finances. It seems gone the days where fraudsters would just walk over us. A good positive to take into 2008.
Of course, who could forget the introduction of South Africa's National Credit Act. This amazing introduction by the government and financial lending boards has brought a stop to the reckless lending of credit. There was a stage when South Africans were in such financial debt, and didn't realise it. Well, we do know. And financing your property is no longer as easy as filling in a form.
We of course had the lovely problem of inflation, which after reading the Sunday Times news paper this morning does not seem to have been fixed yet. South Africa, under immense pressure, with an inflation rate sitting at around 6% is now feeling the brunt on our home loan interest rates. Interest rates have increased 4.5% over the last 6 months with talk of another 0.5% increase in the next quarter.
So after writing this article, I've decided that instead of predicting 2008's behaviour, I'm going to leave you with some tips, especially for the youth, and those looking to invest in property for the first time, in South Africa, and wherever you may be!
Tip 1 - Don't over expose yourself with too much credit! Credit is good, but make sure you have at least one account with a reputable store like Edgars.
Tip 2 - Don't buy property to your limit. I know we all want that 3 bedroom house in Clifton, but start small and work your way up! A site like myroof.co.za or privateproperty.co.za are great sites, no need to pay estate agent commission fees either.
Tip 3 - Use a reputable bond originator and someone whose a GOOD and RELIABLE financial advisor! - See Wizard Home Loans.
Tip 4 - If you're in Debt already and you are listed, make use of services such as The Debt Doctor, who provides free financial advise to those who can't afford to pay for it.
IF YOU WANT A GREAT BOOK WITH GREAT ADVICE - Buy the Suze Orman book advertised on this site - http://www.wizardmidrand.com/home-loans/debt/debt-doctor.html.
So that's that folks. Have a wonderful New Years and be SAFE!!!!
WizardMan Out for 2007!
