Whatshot
Property Talk
Property Talk
Date: 2019-05-10
Dig deep, stay positive and take advantage
The one thing I can remember clearly our Business Finance Professor at UCT saying almost thirty years ago is that Politics and Economics are forever intertwined, and especially in South Africa, and that the astute student of Economics and Finance would always be looking at the expected or unexpected outcomes of current affairs in order to be smart enough to profit from providing solutions to human needs as these arise.
Instead of whining about a certain set of outcomes or the status quo, actively seek out the opportunities that predictably present themselves during times of distress or change.
South Africans will be voting this week and although the overall outcome is reasonably predictable the uncertainty regarding the success or otherwise of the second and third horses in the race may have significant impact on our road forward. What has been clear to many Economists and students of Finance is that the greatest eradicator of poverty in the history of mankind is economic growth and prosperity.
In the absence of these fundamentals, promising to raise standards of living, education and healthcare are as effective as whistling in the wind. What academics are far less clear on is what political system is best suited to deliver on the goals of greater and wider prosperity.
The issue of dysfunctional political processes and how these allow for the elite to capture the state and how ill-conceived policies can constrain economic growth have long been thought about and commented on by the world's leading think-tanks such as the Brookings Institute, who have been studying the success of those developing economies (South Africa excluded) that have demonstrated consistent growth over a period of time.
For those of us that err on the more positive and optimistic side of the spectrum, this week represents an important threshold and opportunity to emerge as a rejuvenated nation setting itself free from the bondage of corruption and self-serving greed.
We have many clients that have emigrated over the past year. Worn down and frustrated by their environment they have taken the expensive option to seek greener pastures - in most cases reluctantly. For those of us committed to making a difference and building a future for our children in South Africa, I anticipate that we are on the threshold of better times ahead.
We service clients on a daily basis and being at the very coalface of property transactions we see the financial stress evident across the spectrum. Many people are having a really tough time. This calls for random acts of kindness to help where and how you can.
Make a difference where you find yourself and in any way that you can. One of the most important things for people is the roof over their heads and the wellbeing of their family - often represented by their home.
That is why it is one of the last things people default on - whether by non-payment of rental or a mortgage installment. Dig deep, stay positive and take advantage of the best buyers market in a decade.