property remains an excellent investment
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.