At times it seems as if the ability to complain endlessly about something is a prerequisite to receiving South African citizenship, but with the economic squeeze as tight as it is we can be forgiven for moaning about the cost of living. But, unlike our usual gripes about crime and poverty, it is important to remember that in comparison to the rest of the world the present South African economic climate, and in particular the property sector, is really not all that bad.

While the constantly rising cost of living seems as though it will never end, it may come as a surprise to know that South Africa’s property market is not nearly as strained as far more developed economies around the world.

All countries in the world are dealing with the high oil and food prices, but South Africa, however, is not dealing with a ‘credit crunch’.

Take the mighty United States for example. Their subprime crisis has all but crippled the housing market and home repossessions in that country are at their highest ever level — an astonishing 1 in every 174 homes received notices of foreclosure during the second quarter of 2008. In Nevada in particular, this number was as high as one in every 43 homes.

Statistics released on 20 major metropolitan areas in the US show that foreclosures in the first quarter of 2008 rose 121 percent and that at one time there were as many as 740 000 properties in various stages of foreclosure. The US is not alone in its woes.

In the UK the subprime crisis has been just as crippling and there are currently 100 homes repossessed per day — a 48 percent rise on the figures from 2007. The UK Council of Mortgage lenders estimates that there will be as many as 45 000 repossessions by year end and that they could see as many as 170 000 mortgages in arrears — all this in a country with just 11.74-million mortgages!

All of a sudden, we see the merits in South African mortgage lenders’ policy of scrutinising every mortgage applicant’s affordability criteria before granting a loan with which they can buy a house.

The National Credit Act has ensured that people who own a house can genuinely afford to live in it. South Africans who are struggling with their repayments are largely doing so because of the surge of increasing rates and living costs.

Property prices are falling in South Africa and they will continue to do so whilst there are ‘distressed sellers’ in the market who are driving down prices in their desperation to sell.

However, if food price inflation and oil prices have reached their peak interest rates will start to come down. The consumer will experience great relief from their financial pressures and property prices will start to stabilise very quickly.

Hang on tight and you could be rewarded...

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