South Africa Car Hire

South Africa's economy, not withstanding recent upward changes in the interest rate, is sound and on track for ongoing growth, which is being felt in the real estate industry. KZN Property expert Pat Acutt discussed the current state of the market in his latest opinion article.

So says Pat Acutt, chairman of the 170-franchise strong Acutts group. "We wouldn't be opening as many franchises as we are if the economy was not strong," he says, emphasizing that property remains a prime investment vehicle, despite some uncertainty around current interest rate patterns.

Commenting on market conditions, Acutt says consumers have no reason not to invest in property ownership. However, he adds, it is important for buyers to factor the possibility of future interest rate escalations into their budgets and in so doing, avoid taking their bond repayments to the limit. "This may mean that people need to lower their expectations slightly in terms of what they are buying, but better to be safe than sorry."

Anticipating continued property price growth going forward, albeit at a slower rate than that experienced in the last two years, Acutt says that this alone is incentive enough for people to invest in property sooner rather than later.

Evidence of the ongoing and sustainable growth of the real estate sector as a whole is also to be seen in terms of both record agent numbers and unfaltering interest from both local and foreign buyers, he says further. "The market is still growing, as is evidenced by recent figures from the Estate Agency Affairs Board (EAAB) which puts numbers at around 71 000 registered agents currently active in the market place. At any given time, there are about 13 000 coming and going in the industry, which gives one an idea of the size and potential of this particular sector going forward."

Local growth is being spurred on by rising interest from foreign buyers who see South Africa increasingly as a holiday and investment destination of choice, he adds, with particular interest from buyers in the Middle East, Dubai and the United Kingdom, all of whom see opportunities to make money here.

Anticipating dramatic changes in the industry in the near future once the Property Charter becomes law, Acutt is upbeat about its potential to hasten transformation in the industry. "There's likely to be some sort of hiatus as the industry adjusts to this initiative by the Department of Trade and Industry (DTI)," he says, adding that the role players need to be ready to meet them. "What is wonderful is that the industry has already been undergoing serious transformation. Real estate is a commission-driven occupation characterized by long hours, which certainly isn't for everyone. Yet it is attracting a high calibre of dynamic people from previously disadvantaged backgrounds who are excelling and making names for themselves," says the man who has recently thrown himself behind a national black empowerment initiative called Sky Properties. The country's oldest real estate brand, Acutts has built its reputation on the back of its pioneering spirit, says Acutt, and this has never been more apparent than its recent partnering with Sky Properties, which already has 12 offices in operation and another 11 more in the pipeline.

He also expects an impact on the industry once proposed amendments to the National Credit Bill are promulgated. "These changes are going to have an impact on the market because they are going to make it easier for people with judgments against them to buy property in the future," he says.

Going forward, Acutt sees little scope for success for reactionary agencies. "It's time to become proactive, to go out there and make it happen. And this is best done by embracing the three "R's", namely renew (contacts with clients), relevance (in terms of the new regulations facing the industry), and (achieving) results."

News source: www.news24.co.za

Posted by: www.SouthAfrica-CarHire.com
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