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Date: 26/03/2018     Park Village Auctioneers     Auction News


Now is the time to invest according to Park Village Auctions head auctioneer, Roy Lazarus

How the country’s political, economic and social landscape has changed in the space of just three short months.

To make the most of the investment climate that is currently gripping the country, head auctioneer of Park Village Auctions, Roy Lazarus has some sound advice for would-be investors. “In these times investors need to keep a level head to make buying decisions based on reality and educated guesses rather than false perceptions, mass hysteria, or on the other end-of-the-scale, overly euphoric reactions.

“It pays to remember that on the upside the markets currently believe in the abilities of the new leadership with resultant currency appreciation and improving market segments. On the downside the expropriation issue raises concerns for property ownership and is sensitive enough to lead the country into turmoil if not sensitively, but decisively dealt with for once and for all.
“Where does this leave the investor? At a crossroads quite frankly, either wait and see what happens, or buy now while the markets are at the bottom of a cycle and take advantage as the wheel turns. One thing is for sure though, make sure you select your investments carefully and buy right at the right price and you will never go wrong,” he says.

Property investors
Lazarus says property experts agree that the new political dispensation is bound to have a positive effect on the residential and business property market.  However, it will take some time to filter through and the consensus is that the market in 2018 will only grows by about 1%. This means that the buyer’s market that has prevailed since 2016 will continue, fueled by the fallout of the extended economic downturn, ratings agency downgrades, poor growth and lack of confidence in the market.
The current property climate more closely represents an “auction market” with the benefits of auctions favoring both buyers and sellers. Currently, incorrectly priced properties remain on the market for protracted times and may even become stale - making it almost impossible to sell. Whereas on auction the seller sets a minimum and the market dictates the eventual selling price.
“In these instances, the actual price fetched is usually directly comparable to the real market price average. In a sellers’ market we find that sellers have inflated pricing expectations which considerably slows the process. By comparison our auctions represent realistic pricing and opportunities for buyers and investors to find properties in their chosen areas at an affordable price.”

Vehicle sales
The market for vehicles is no different with lots of good stock and a growing base of potential buyers. While experts are forecasting a new vehicle sales growth of just 1% with around 561 753 to be sold this year, the car market is growing far faster than that and requires a healthy second-hand market to fill in the gaps between people’s requirements and the actual cars that they can afford.
PVA director, Clive Lazarus says this year the key word is affordability, with import duties, emission taxes and VAT on the rise and pushing up the overall cost of a vehicle. “The result unfortunately, is that people will either overextend themselves to buy the car that they want but can’t actually afford or they will look towards auctions to find their dream car at an affordable price on auction. “Our repossessed vehicle auctions therefore represent an excellent opportunity for buyers of all types of vehicles to find the car they really want at a price they can really afford.
“Prices fetched at our recent bank repossession centre auctions also show that quality cars at a good price are still in high demand. The same applies to less expensive cars where astute buyers recognise our auctions as a reliable place to invest in clean, low kilometre vehicles.”

Going global
At the same time, PVA’s remote bidding is maturing and attracting good quality buyers from across South Africa and across the globe. It represents a convenient, time-saving and transparent opportunity to buy items at more realistic and market-related prices.
It also has the knock-on effect of attracting more sellers who come to realise that auctions do indeed provide a realistic and profitable method of disposing of goods and assets. Participants need simply pay a deposit and register for eligibility to bid. All bids are submitted incrementally as bidding proceeds on the day, via home, office PC or other devices. The deposit is refundable should there be no bid.

He suggests that buyers watch the auction pages and pay daily visits to the Park Village Auctions website to seek opportunities and identify the type of goods required.

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