Real Estate Investor Magazine South Africa August 2014 | Page 7

INVESTOR TALK
FROM THE EDITOR

C

harles Swindoll said:
“We are all faced
with a series of great
opportunities brilliantly disguised as impossible situations.” It rings particularly
true in the current economic,
social and political climate we
find ourselves in.
But take note that everywhere around the world,
pockets of people are rising
up and taking back the power
from the big corporates, the
established financial institutions and the oppressive government structures. The Internet, social media and rapidly-evolving, ever-more affordable technology is leveling
the playing field, and those who are able to adapt, change

FROM THE PUBLISHER

I

n the current tough
economic environment
the argument for renting vs. investing is rearing
its head again. TPN’s latest
Rental Payment Monitor
indicates that rental payment behaviour is starting
to show strain. This, coupled with the latest interest
rate hike, puts investors in
a tough position. The outlook across the board is that
investors can experience
worsening rental collections and payment performance. Reduce risk by identifying the best areas with
measurable yields when buying and screening potential tenants thoroughly.
In South Africa we have always promoted a culture
of homeownership. John Loos of FNB believes that
changing the mindset from a homeownership culture
to a rental culture is the answer in a low growth new
build market. He notes that a rental culture offers
benefits of being more mobile, living closer to places of employment and saving on expensive transport
costs. From an investor perspective, more renters will

and innovate are finding creative new ways to compete
globally against corporates, to raise finance, to build businesses, to create jobs and to grow sustainable wealth for
themselves and their communities. They are doing what
they can, with what they have, where they are.
As more people step up and claim responsibility for
improving their lives, their communities and their environment, we will see an evolution in the way we live, work
and invest. Witness the rapid rise of game-changing concepts such as crowdfunding, alternative currencies, greening, sustainability, fair trade and community building.
Brilliantly disguised as unprecedented economic, social
and political upheaval, lies the opportunity for a radically transformed world, cha Ʌ