prop­erty re­mains an ex­cel­lent in­vest­ment

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LONG TERM In­vestors and home­own­ers who were spooked by the down­turn in the hous­ing mar­ket in 2008 can rest as­sured that res­i­den­tial prop­erty re­mains an ex­cel­lent long-term in­vest­ment, as long as you get the tim­ing right.

Prop­erty an­a­lysts Light­stone have re­searched trends in the South African hous­ing mar­ket over the past decade and found that only home­own­ers who bought and sold in a brief 12-month win­dow from 2008 to last year would have lost money on their in­vest­ment due to neg­a­tive house price in­fla­tion. “The hous­ing mar­ket has sta­bilised and we are now en­ter­ing a pe­riod of re­cov­ery, but we can­not dis­count the pos­si­bil­ity of an­other dip, as the global econ­omy re­mains un­der pres­sure,” says Light­stone prop­erty an­a­lyst, Hay­ley Ivins.

The Light­stone in­dex looks at where the hous­ing mar­ket is now in terms of to­tal trans­ac­tions, dis­tressed sales (prop­erty within 31 days of a sale in ex­e­cu­tion no­tice), and neg­a­tive sales (homes sold for less than the pre­vi­ous pur­chase price), com­par­ing data from 2000 to this year. The hous­ing mar­ket has gained the ground lost in house prices from 2007, al­though the to­tal vol­ume of trans­ac­tions per month is still down.

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