Eyebrow Posted April 4, 2014 Report Share Posted April 4, 2014 http://www.forbes.com/sites/jessecolombo/2014/03/19/a-guide-to-south-africas-economic-bubble-and-coming-crisis/I dont understand the economy really. Not my field.But there are a lot of up and down grafts, and the guy kinda sounds like he knows something about the economy.And it does sound a bit ominous to me. Esp since ALL our equity (thats my only big economy word I know) is in the house...And i wanted to keep the house and rent it if we go to aus on 457. But now I wonder...What are your thoughts? Quote Link to comment Share on other sites More sharing options...
AFreshStart Posted April 4, 2014 Report Share Posted April 4, 2014 Eyebrow,Yes, my wife is in fiance and has similar views on the matter, we are selling our home. It's a sellers market at the moment, at least here in the Southern Suburbs, we've already had several enquirers and our house isn't even on the market yet! Also the interest rate is currently being held where it is until June, so we feel it's a good time to sell.Also if you rent, what happens when/if a payment is defaulted on back in SA? Maybe you're ok if you are bond free, but having to find the money to pay it, either evict (which is a lengthy process) or find new tenants and repair anything from abroad can be a bit of a nightmare.CheersMatt 2 Quote Link to comment Share on other sites More sharing options...
benp Posted April 5, 2014 Report Share Posted April 5, 2014 I'm afraid I do not have anything intelligent to add but when reading any economic blog this quote comes to mind:'An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.'-Laurence J. Peter 1 Quote Link to comment Share on other sites More sharing options...
Bronwyn&Co Posted April 5, 2014 Report Share Posted April 5, 2014 (edited) It's all dependant in the tenant you get. You can get lovely ones, or it can be a real pain and a money pit with complaints every 5 minutes. You still have to pay letting commission, rates and repairs and what if they mess it up? Will you be up for capital gains tax in a few years (when it's no longer your principal place of residence)? Not knowing what will happen to the ppty market in 5 years, I would venture to say sell rather and if you get any spare money out after settling your bond, you can invest at x percent. Your house value would have to grow by more than this percentage every year just to stay ahead of a cash investment.We have an investment ppty in Bne and it is a huge pain. Everyone makes money (agents, repairman, bank, ATO, council) except us. I can't wait to get rid of it. Edited April 5, 2014 by Bronwyn&Co Quote Link to comment Share on other sites More sharing options...
Bob Posted April 5, 2014 Report Share Posted April 5, 2014 Invariably, when people or even governments, have access to quick cheap, low interest money, they spend and spend.This brings on debt . . . . . and more debt.Just ask the Greeks all about quick, cheap (low interest), easy (very little credit check) money and how it all came back to bite them after they went on a spending binge.The South African gov't is run by people I wouldn't vote for in a pink fit, so how do you reckon they are going to handle money that floods in for speculative purposes, largely???? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.