• The House Price boom has come to an abrupt end. The easy money has been made.
• House Prices are expected to fall in real terms during 2008 and 2009 at least.
• The next bull market is not expected to match the previous one.
• It is a buyers market, not a sellers market.

• If the net forward yield is too low, then prices are too high / rentals too low or both.
• Rents have accelerated to double digit growth.
• Net forward yields are 8% ± in JHB (adequate) and 4 - 6% in Cape Town and Durban (too low).

• Listed Property Prices have fallen 35% ± from top (Nov. 07) to bottom (Jul. 08) but recovered strongly (Aug 08).
• Dividend yields have increased from 6% to 10% and back to 8.5%.
• If interest rates are in the process of topping out, we have already seen the bottom in Listed Property prices !!!

• Commercial Property Prices are much more stable than that of Listed Property.
• The valuation of Commercial Property is more efficient from a long term perspective than Listed Property.
• The best value seems to be:
  1. Industrial
  2. Offices
  3. Retail

• In a Balanced Portfolio diversification cuts across all asset classes (Cash, Fixed interest, Equities and Properties).
• Diversification should also cut across local and overseas investments.
• In many stable overseas countries the initial Property Yields are in excess of Cash, and Bond yields. This is more attractive than in South Africa.
• Your Property Portfolio should ideally also be diversified overseas.

Property is

• an excellent long term investment
• a very good risk diversifier
• a high yielding asset with growth in income.

In the long term property is expected to outperform

• the money market
• fixed interest investments
• a conventional guaranteed life annuity.
• Viva Property, Viva!