Property prices going down

[Karenwhe]

"I expect the fact that investing in property overseas is pretty attractive right now isn't going to help local markets much either."

That is not exactly true, unless you speak about speculating = that is not investing.

I see what is advertised in other countries that SA investors are looking most places they are buying into another boom market. Which can land them in the same place the boom in SA did.

Professional speculators can make a fortune right now overseas in certain places. But that is really not investing as they are looking at capital growth and then sell in 1 to 3 years.

Capital growth in "ghost money", until the time and moment that is realized. But it has to be realized.

In what country do you see prices so low (as in some areas right now in SA) that you can make money when you buy and reduce the risk of the purchase to minimum?

[Dave A]

I see what is advertised in other countries that SA investors are looking most places they are buying into another boom market.

That would be putting the "opportunity" too strongly, surely.

I'd say it is a good buying moment in a depressed market just like here - with the bonus of being a Rand hedge, relatively low interest finance and good long term prospects of being able to collect the rent.

I agree you still got to pick them and not get swept off your feet with agent sweet talk overamping the pitch

[Karenwhe]

The overseas market that are sold are in boom markets. In other words you rentals will NOT cover the bond.

This also means that you are exposing yourself to stronger currency shortfalls. In simple words you pay MORE for the pleasure of risking your money, when you could do it just as well at home with less risk if you are into taking risk in the first place.

I really don't understand why people are so blind to shortfalls.

Yes, of course if you are a multi-millionaire and you can buy outright and keep until "the cows come home" or with some bonds and you don't really care if you lose it because these buys are speculations (in case the markets will not go further up in some boom areas) - then it is not a problem.

But I see these places are sold to hard working people with high salaries. A salary is a salary and a shortfall is a shortfall and it HAS to be sustained not to lose the property.

Most people still don't get the difference between speculation and investing and will pay a high price for it. Most are already paying a high price for it in SA for buying high and wanting to sell to the "last fool in line" (as they say on the stock market). All you have to do is check the repo lists and auctions in execution to see the state of the affairs.

Now the market is depressed here so we are looking to make the same mistakes overseas. How does that make sense?

Really, there is no rocket science here, it is simple maths.