Observe the following snippet from this listing selling a loft apartment in Port Elizabeth. PE is usually outside of my interest area but his just perfectly illustrates the completely idiotic ideas that were rampant, and probably still are, during the bubble.
This loft is already tenanted at +/- R2500 pcm, bond monthly installments +/- R4500 – you can therefore own the apartment and only have to pay in R2000 per month!!! Great Investment.
If you’re paying in R2 000/month for an asset that is not increasing in value (and probably dropping in todays market), that dear readers, is not an investment; it is the very definition of liability.
Original Post on Cape Town Property Bubble: The Logic Is Impeccable
