It's at an interesting time in the market. The market has gone from Peach to all Strawberry's and Cream for property investors buying investment properties. The effects of the interest rate hikes, NCA, more interest rate hikes and the looming new rates and taxes bill, due to kick in next year, are coming together in close succession, creating a boom time for property investors with capital to spare. Now it is the time to buy investment properties.

Good investors have been holding something back during the boom years, circling the market in search of the weak and unsuspecting. As the dust of the race to buy clears, the carnage of the market is starting to show and finally investors can act on their counter cyclical instincts and come down to feast at the vulture restaurant.

Investment properties are becoming more frequent to find, despite the last defiant efforts of many property owners. Crazy offers, once shunned and scoffed at, are suddenly starting to look good. Even fearless, mighty property empires have had to realize that the middle and upper end of the market is just not where growth is happening just now, and have had to announce a change in strategy to purchasing second hand property in order to keep the cogs of the corporate machine oiled.

Here and there bulls are still thrusting their horns in hopeless attempts to lift confidence. Reports of mid 2008 market recovery push across the ether only to collide with the reality that, with festive season ahead, interest rates are more likely to go up than down. The oil price hovering on the $100 a barrel price and world money markets teetering deadly close to a tumble.

It would take a miracle for the market to recover in just a few short months and we think that property investors can look forward to a busy festive season and productive new year. However, everything must come to an end and strategy will have to change when in 2009 the country goes to election. No government wants to go to election with high interest rates, so we feel confident that interest rates will track sideways for much of 2008 until they slowly come down in preparation for the 2009 election.

This year also sees South Africa hosting the Federation Cup in preparation for the World Cup in 2010. The influx of foreign capital is sure to strengthen our currency and relieve much pressure.

With this in mind we are already preparing to change our strategy and be ready for the moment when we can again look at the middle and upper ends of the market. As property investors feast on the plentiful picking, we all have one question on our minds, “Where will we be buying investment properties when all that remains of the current vulture restaurant is bones”.

See also more about How to profit in property investing from the NCA . 

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