From having discussions with franchisees and agents, "it is now clear", said Tony Clarke, MD of the Rawson Property Group, "that the reckless spending of yesteryear is being cut back and South Africans are no longer quite as spendthrift as they were in the 2004 to 2009 boom era".
Many of the younger generation, he added, had until 2009 never experienced a serious recession and had 'played the credit game' recklessly, making maximum use of hire purchase, credit card and access bond facilities. In the process many had got seriously into debt, from which they are still struggling to emerge. Now, said Clarke, there appears to be a welcome return to a more responsible approach to household financing - and the cut back on holidays, especially overseas holidays, augers well for the future.
"For the man-in-the-street," Clarke reminded the property buying public, "the 7 to 8% annual rise in property values makes property probably the best investment available - and it is one of the very few which can be done on borrowed (bank) capital. Furthermore, it has to be pointed out that in contrast to many of the more successful European countries, South African property is still affordable to a fairly wide cross-section of population, including young people, even though there is still a very large segment which at this stage has no hope of becoming property owners."
As recent spokesmen for the state have pointed out, said Clarke, the consequences of people reaching middle age without owning their home and having to continue to pay rent puts a serious strain on any national economy's budget. It is therefore, essential, that home owning be fostered.
