INVEST
S
ince the beginning of the lockdown industries have experienced an extremely hard financial knock . One that has left many companies shut , leaving people unemployed and economies of several countries stripped . One of the largest portion-contributors to the GDP of South Africa , the property sector , has also felt the knock . First-time property buyers , new investors , first-time real estate investors have also been economically dried out by the merciless Covid19 pandemic . And as they grapple standing back on their feet now that business activity is starting to regain momentum , this poses an opportunity for experienced analysts and industry players to bring forth property wisdom to first time property investors and investor intelligence to first-time and veteran real estate investors .
This can be done by sharing their knowledge about the state of affairs of the investors ’ investment jurisdiction , the state of various markets in the property sector , property finance and investing principles as well as practical advice on where and how to invest today .
With all the financial strain has come negative impact , like the contraction of the economy which affects the stability of the country from the property market activity to the social being of the country and the stability of other markets too .
Economic Stability
According to First National Bank ’ s economist , Siphamandla Mkhwanazi , a great shrinkage in South African economy should be expected in the year 2020 and the labour industry of South Africa is the most threatened in this coming misery .
“ We expect that the economy will contract by about 8 % this year and that is going to have implications on the labour market which is an important fundamental for demand in the property market . And based on that GDP contraction of 8 % we expect the labour market to shed about 850 million to 1.2 million jobs . However current data has not suggested that we have seen job losses , at least , to that magnitude ,” Says Mkhwanazi .
SA Real Estate Investor Magazine SEPTEMBER / OCTOBER 2020 9