Thursday, 08 June 2006

Today’s 0,5% rise in interest rates has signalled a change to property investment strategies and a “wake-up call” to those who believe things can just keep getting better, says commercial investment property experts, Bales Delaporte.

“For more than a year, property prices have been rising steeply, capitalization has been falling steadily and optimists have been saying that things will just keep getting better.  However, human beings have short memories and sometimes need to be shaken into reality,” say Tony Bales of Bales Delaporte. 

The average long-term interest rate over the last 12 years has been approximately 14% with current interest rates at a 40 year low.  According to Bales, South Africa is still deemed an emerging, risky and far-away investment market and only due to the lack of investment choice has the commercial property market seen such rapid growth with the residential market continuing at heady levels. 

“However,” cautions Bales, “the good times don’t last forever.”

“Experienced property investors have been sitting back while huge prices have been paid for marginal properties.  These investors have seen similar cycles in the past and know how and when to jump back into the market.”

“This is the opportunity that many knowledgeable people have been waiting for,” says Bales.  “It has been purely a matter of when rather than if the interest rates move upwards. For a while now, the warning signs have been around that more defensive property investment strategies need to be adopted.”

“The market should remain fairly buoyant,” concludes Bales, “but hopefully with a realistic undertone where buyers and sellers realize that there are cycles to the property market ….the wheel has just tuned a few notches!”

Ends

For more information please contact Bales Delaporte on 0861 332 562 or visit www.balesdelaporte.co.za

Issued by:                   
Catherine Pate
082 922 1737
(021) 556 0100

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On behalf of:              
Bales Delaporte
Contact:                     
Tony Bales
083 675 3773
www.balesdelaporte.co.za

Bales Delaporte

Bales Delaporte is a new niche property company specializing in the selling and marketing of commercial and industrial property. The company was founded by Tony Bales & Guy de la Porte, who between them have almost 40 years of property experience.

Tony Bales started his career at Old Mutual Properties in 1990 as a Property Investment Analyst.  He has since held various property related positions, as a developer, broker, asset manager and landlord, gathering a valuable knowledge base in the Southern African property industry.

Guy De La Porte was previously a director of Broll Property Group and the De La Porte Property Group.  Guy has won numerous accolades as a top broker from major landlords in South Africa.