Property Boss Optimistic About the Future
The information in the article is courtesy of Realestateweb (Six reasons to be cheerful about 2009 – Property boss – 20 November 2009)
Jan Le Roux, CEO of Leapfrog Property Group says that he sees more positives than negatives for 2009. He added that political leaders should stop looking after themselves and rather focus on the country’s people – especially in a time where economic indicators are showing that the economic slump may have bottomed out.
Some of the positives, according to Le Roux are Finance Minister, Trevor Manuel’s prediction that growth should increase to 4,3% n 2010 and his bid to spend R600bn on infrastructure. On top of that the promising 2010 is looming.
The best news is the fact that the CPIX inflation has slowed to 13% from 13,2%. On top of this we might also be in for a first rate cut of 50 basis points (half a percent) in February.
Among the other positives are WesBank’s vehicle sales’ confidence indicator showing that an increase of 4,3% can be expected for 2010.
Although Le Roux warns that it might not be time to bring out the fireworks yet, the bottom has been reached and things can only get better now. He also assured property investors that property is still a sound investment; hence you see it as a long-term plan.
“People still get married and divorced, have kids, kids leave home, get promotion, move between cities, etc in all markets. Sellers who sell in high markets have to buy in high markets. Sellers, who wait until the low market improves, may sell at a higher market but will buy at a higher market, whereas if they sell in a low market they buy in a low market.”
Le Roux said that, unless politicians stop playing the man instead of the ball, South Africa might be plunged into a deeper and prolonged recession, as the markets are very sensitive to political situations.
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