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PROPERTY ADVICE
How do you think that Covid19 is going to impact the housing , rental and buy-to-let market in the UK ?
SEAN THOMSON Wealth Migrate
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re-pandemic , in the UK we had Brexit , so for a good three years we had the great word ‘ uncertainty ’ in the market , so the pandemic has spiked that uncertainty quite considerably . A very wise man , Warren Buffet has said that when there is fear , people are greedy and when people are greedy be fearful . This means that there is a lot of fear in the marketplace at the moment , which means there are a lot of opportunities . So , to the trade investor who understands the market that they are going to be investing in , it is important that you look at the state of the markets you wish to invest in , look at the behaviors of the people playing in that marketplace as they , in some way , tailor the state of the market . When the property market opened up in England , the Right movement had more than five million clicks on their website since they ’ ve been around , and this is a milestone for them . In terms of the rental demand , we had a zoom call with some of the letting agents that we use , and according to them , the demand for letting is quite massive . The fundamentals of any marketplace are quite strong in so far as supply and demand . Property values are falling , which is great if you are buying for cash flow . The money is cheap and , in the UK , the base rate is 0.1 % and it has never been this cheap before .
Is Johannesburg CBD still an exciting residential redevelopment destination ?
We are very much fixated on short term noise , such
that we forget about long term trends . Short term noise could be three , six months or even 18 months , that is not as important as sticking to the long term trends . It is important that prior to investing you take note of just two things , the two fundamentals of supply and demand .
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Mass urbanisation : it is highly unlikely that mass urbanisation will effect Covid19 . For instance , the number of people in Gauteng as a province is increasing and that doesn ’ t change anything in so far as the coronavirus is concerned .
Rising costs or buildings / new developments : will this change ? Absolutely not , there is big support into the market .
CARLO MARIANI The Property Coach
This is all to say that you should stop focusing on what is going to happen in the next six months , start focusing on what the market will look like in a longer term I . e . In 10 years . It is highly guaranteed that in 10 years the market will be very healthy and if you haven ’ t bought property now , with all that information , you will regret the decision not to .
SA Real Estate Investor Magazine NOVEMBER / DECEMBER 2020 5