Caution⚠️: The SA Property Bubble & Why It's Going to Burst

Is the SA bubble set to burst? Find out in our exclusive newsletter!

Author

Deji Sangowawa
August 12, 2023

Reading time : 3 min.

Hello there,

Welcome back! We've got some brewing news in the SA sector that might get your pulse racing a bit. Buckle up, and let's dive in.

1. Thunder in the SA Paradise

The UK government might throw a curveball into the SA market. A recent article points to new proposals allowing local councils to block home listings on short-term rental platforms. Why? To protect affordable housing. The implications for us in the SA sector are significant: more regulatory hurdles and potential costs.

2. The SA Bubble is set to Pop

Unregulated markets inevitably face a reckoning. With the SA market's meteoric rise and holiday home owners flocking to join the trend, a bubble was bound to form. This doesn't spell doom, but a significant reshaping.

3. The Regulatory Sword: Planning Permissions

The upcoming proposals may require planning permissions for property listings, potentially leading to increased costs, delays, and intense competition. We're looking at a rocky path, not a dead end.

Preparing for the Tempest

How do we weather the storm? Here are some steps to consider:

  • Diversify: Explore other property sector opportunities. SA, in my opinion, is a means to an end. As such don’t expect to rely on it forever.

    Get into it now and then reinvest into property strategies before its too late

  • Stay Informed: Stay updated on changes. This is crucial for proactive adaptation.

  • Plan Ahead: Consider potential changes before expanding your SA portfolio.

5. Spotting the Silver Lining

Despite the brewing storm, a silver lining exists. The demand for SA units will persist, albeit in a reshaped form. The proposed changes might weed out the get-rich-quick crowd, resulting in reduced competition and a potentially more sustainable market.

In summary, brace yourself, stay alert, and be ready to adapt. We're in for an exciting ride!

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Stay savvy,

Deji