INVESTING
Of course , this is easier said than done ! Because there are many valid reasons why everyone is swimming downstream . Mr Buffet also says that when things are going well , people never expect it to go poor again and when things are going poorly , people never expect it to go well again . We often fall into the trap of thinking that when the economy is doing well it will never make a turn for the worst and when the economy is not doing well it will never improve .
It requires a lot of maturity and a different perspective to take a step back and look at things the way they truly are . The thing most people miss is that when things are going poorly , it is often the best time to climb in and start investing ! Buffet ’ s insight resonates with me here as well : “ Uncertainty is the friend of the buyer of long-term values .” The truth lies in recognising that economic cycles are inevitable , and wise investors capitalise on opportunities during downturns . We should apply this to property investment as well .
Turning Uncertainty into Opportunity : Economic Mastery Unveiled Currently , there is a lot of uncertainty and fear about South Africa as well as about property investment in South Africa . The country is facing an economic slowdown with high unemployment rates and slow GDP growth . Our current political situation isn ’ t helping either , but I have hope that things will look up with the election in 2024 . We are also not immune to rising interest rates and external economic influences that shape the country ’ s economic outlook .
However , it is this very uncertainty and fear that are creating opportunities to purchase properties from panicked sellers who have no regard for the intrinsic value and long-term economic worth of the properties they are selling .
Investors seem to have short memories , and as Warren Buffet states : “ What we learn from history is that people don ’ t learn from history .” I believe that if we
39 MARCH 2024 Real Estate Investor Magazine