So the Sunday Times says that the World Cup has already brought in over 450,000 international visitors and pumped R6,5Billion into the local economy. According to global auditing firm, Grant Thornton, a conservative R93Billion will be pumped into the South African economy over the 4 week world cup period. And these benefits are two of the many short term rewards of the beautiful game’s greatest show.
The real beauty is that over the long term, South African will enjoy positive marketing like never, ever experienced before. We will enjoy a favourable world view for years to come. South Africa has already shown the world that we are a modern, dynamic and first world nation where visitors are far more likely to be killed by kindness than by bullets. The hundreds of million people who follow the news have already discovered that it functions far more smoothly than many so-called first world nations.
In addition, and perhaps more importantly, we are showing the world that South Africans are a friendly welcoming bunch and will play a positive role as a successful development state.
So what is making our local investors so jittery?
Every day I am seeing great bargains and deals around the country. The property market has softened considerably over the last 18 months and bargains are ready for the picking. In fact today I popped into two show houses in upper Bantry Bay where lucky buyers will land up buying this country’s most exciting suburban investments at prices cheaper than what it would cost to build these luxury homes.
Right now, as the world focuses on South Africa, interest rates have gone down to a 25 year low. It’s the first time that a local recession has coincided with a low interest rate environment. Quite simply it is cheaper to buy and cheaper to borrow. The country abounds with opportunities.
So why aren’t South Africans, who can afford it, rushing to buy every bargain that presents itself?
Today as I was searching a web site with business quotes, I stumbled across this one from American industrialist J Paul Getty : “I buy when other people are selling”.
So is it the case that the clever money, the shrewd investors will be buying right now?