“Real estate is, and always will be, one of the highest-yielding long-term investments. Having lived through the market crash in 2008, I have witnessed how the market corrects itself over time, " says Goslette, the chief executive of Re/Max of Southern Africa.
“I fully believe that the housing market will do the same once we emerge from this lockdown and reach an end to this pandemic.”
Citing Lightstone statistics, he says a R1.6 million property purchased as a primary residence in Claremont in 2010 is now worth R3.5m.
By comparison, if you had invested the R1.6m in a money market at a 10% interest rate for 10 years, the value of the fund would amount to R3.38m after tax. Homeowners who choose to sell after the 10-year mark or so will almost always make a “substantial profit”.