Sep 06 2008
Humour in Adversity
While many people were able to became home owners during the housing booms, there were those who overextended themselves, be it buying a first home or an investment property, and are now struggling to come to terms with the new market. We have much to be thankful for when we compare the situation many people find themselves in in the US.
The Los Angeles Times ran a story ‘Homeowner in doghouse, bobcats move in‘ about a vacant repossessed (foreclosed) home being taken over by a family of feline squatters. The response from readers in the article ‘Cats on a bank-owned roof: Bobcats claim foreclosed house‘ are well worth the read. (Both titles link to he articles).
The traditionally conservative lending policies of the banks and the introduction of the National Credit Act (NCA) contributed to saving the South African market from feeling the added sting that the American market is having to deal with as a result of the sub prime lending that was offered in the US.
The sub prime lending, as with the investment strategies introduced by many of the ‘property investment trainers’ that emerged during the past few years, is best suited to strong markets with good growth. Anyone who is following the teachings of a property investment course, is best advised to revisit the material from time to time and check for themselves that the strategy adopted is still sound.