Message from the MD - May 2017
Category Newsletter: Message from MD
Dear Friends, Property Investors and Enthusiasts,
The month of April, with its many public holidays, long weekends and school holidays, is usually known for its relaxed feel; this year that was most definitely not the case! With the sacking of our Finance Minister and SA’s swift relegation to investor junk status we have already experienced a lull in the property market. The fairly large increase in fuel prices announced for April – and another that will take pace this evening for May – will both lead to an increase in transport and food prices, which in turn will lead to a rise in inflation. Merely a month ago there where talks of possible rate cuts. This will most definitely not be the case once the Reserve Bank’s Monetary Policy Committee meets towards the end of the month.
As it becomes more difficult to purchase property, more people are forced to enter the rental market. With the surge in demand for rental properties a number of listed Property Funds, who usually invest in commercial and industrial developments, are currently purchasing entire residential developments to add to their property portfolios.
Author: Nico Louw
