South Africa is a country with many faces. Each town, big or small, add to the overall picture. Every town has its own culture and each community its own pride.

Riding a sizzling house market has got a lot to do with how prospects are perceived by potential buyers. Most important is what the town offers in lifestyle and future development. In any economic downturn there still is value for would-be buyers to continue investing in certain pockets of South Africa.

In previous economic downturns it was easier to use traditional ways to access money, such as taking a bigger loan on your property. However Banks have turned the taps off; the results being a vaporizing effect on the number of qualified buyers in the market.

The world economy has changed and “survival of the fittest” means that the fittest will be the ones who will become creative and utilize the strengths of the entire community to survive.

All members of a community should stand together in order to make their town attractive to these would-be buyers. An influx of money into a community means prosperity, and a lack of it holds a bland future especially for those who are not selling their properties and remain in town.

Linda Erasmus, CEO of Fine & Country South Africa, says that “cash is king” again and the focus has moved to attract buyers with cash. There are clever property investors who made money during the boom time. Therefore they are going to buy during the down turn. These ‘would-be’ buyers are shopping around and most of them will invest somewhere in South Africa. The down turn in the market has also created other opportunities: people are downscaling, and smaller towns are still an attraction to these buyers. Herewith some criteria which can help to draw them to your specific town:

1. Smaller towns, away from Cities attract the buyer who wants an easier lifestyle. These buyers have the perception that moving into the Country will also be safer. The truth is revealed through the local media. If the local newspaper is full of doom and gloom your would-be buyer will go and look for another spot to settle down.
2. The number of ‘for sale’ signs up in any town tells a story. If every second house has a ‘for sale’ sign, the would-be buyer will wonder why everyone is leaving town.
3. When there are 10 signs up in front of many of these homes, the ‘would-be’ buyer will read into the situation and think the whole town is desperate to move out – changing him into a real bargain hunter. It is common practice in many of the smaller towns to allow every agent to put his/her ‘for sale’ sign up on a property. Should he still have a good enough reason to continue to look for a property in that specific town? Rather change to no signs at all and force the buyer to contact the estate agent via their advertising; it creates a different perception.
4. Clean streets tell a lot about a community. Nothing beats cleanliness. Every member of a community who ever assisted in keeping their town clean, will be realizing the value of their action the day they sell their property.
5. Property remains a long term investment and the very few who made big money during the boom time should be happy with their bonus. The environment surrounding the property plays a crucial role. Therefore property owners should be encouraged to become more involved and not only look after property itself (which of course still remains an important factor when selling).
6. In a town that’s well looked after, with clean streets, a neglected home will still sell. In a neglected town, with one property well looked after the odds change substantially.

Change is inevitable, and whilst the recent property boom encouraged individuals to live happily ever after on their own, it will only be the top 10% who do not need the support of banks, and will keep on living the way they used to….unless they are true property investors. A true property investor makes money over a long period of time – the inexperienced property investor will always want to make a quick buck, and within that process they are likely to learn the hard way.