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Property bargains beckon, says expert

Aug 18 2010 17:21 I-Net Bridge

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Johannesburg - While the property market still faces headwinds through high household debt levels and rising unemployment, it may be an ideal opportunity for property investors to enter the market locally and offshore, said Real Estate Investor Magazine CEO Neale Pietersen.

Addressing a conference in Sandton on Wednesday, he said the local property market had lost 40% of the value it held prior to the 2008 global financial crisis.

He added that he had noticed an increase in property auction sales this year compared with last year.

"There is a huge amount of good priced residential properties in the market right now for investors, with interest rates still low."
 
Property investors are also likely to benefit from listed and unlisted property, where yields are continuing to increase.

"Both listed and unlisted property markets have yielded about 20% so far this year," he said.

These positive developments, Pietersen added, have led to the re-emergence of property trading.

Pieterson pointed out that the main reason why local investors should consider offshore investment is the huge number of property foreclosures, particularly in the US, which was hard hit by the recession.  

"The property environment is quite promising for investors in 2010 after the recent global downturn," he said.

 
 
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