The trillion rand property collapse 2.0 - Magnus Heystek's R500k+ Hartbeespoort mistake

Brenthurst Wealth Management founder Magnus Heystek tells the sad tale that is the South African property collapse. The investment strategist – who has successfully called thematic trends in the global capital markets for the better part of the last decade – tells a sombre story of his own property investment mistake. Heystek outlines the risks inherent in private property investment, which have increased over the years owing to increased taxes, levies, friction and selling costs. Bar the obvious risks, opportunity cost and liquidity are also two major contributing factors to his thesis. The R900,000 he invested in 2008 would be worth around R10m if he had invested in the tech-focused Nasdaq at the time. He realised a mere R360,000 after all selling costs had been deducted, when he recently managed to find a buyer for the property. Property investment has long been seen as a safe haven investment, but Magnus believes that until things fundamentally change in South Africa, this is no longer the case. Learn more about your ad choices. Visit megaphone.fm/adchoices