The run-up to the Mangaung conference is likely to be a volatile period in South Africa's history. However, it will also be a good time for foreign investors to invest in South African property, says Bill Rawson, chairman of the Rawson Property Group.
"Anyone looking at South Africa today might get the impression that we are a very unsettled country. Strikes have now become a part of our daily lives and they were one of the main reasons why Standard and Poor chose to downgrade us. In addition, President Zuma's inability to initiate sufficient delivery programmes and to provide adequate services in the impoverished areas, as well as the growing belief that he and others are benefiting at the expense of the economy as a whole, will continue to incite the youth and arouse widespread unrest. We must, therefore, buckle down for a rough ride until the conference is over and done with."
Rand might weaken
This rough ride may cause the rand to weaken further against the major world currencies, which, in turn, will make it possible for foreigners to buy here at quite exceptionally good prices. "The simple truth is that at current exchange rates, it is possible to buy a beautifully designed R6 million Constantia home on an acre of ground for roughly the same price as is now paid for a small two bedroom flat in Knightsbridge or Chelsea," said Rawson.
"I have confidence that South Africa will remain a very good place to invest. The current performance of the JSE Securities Exchange, which has recently hit all-time highs, shows that this confidence is shared by most of South Africa's economic trend analysts." Nevertheless, the discontent now aroused, will almost certainly not die down and could lead to the DA taking over a number of municipalities in Gauteng. This would be highly beneficial for the Gauteng property market.
*Taken from Bizcommunity with permission from Rawsons.