Luxury is under increasing liquidation. Struggling cities include Miami, the Costa del Sol, Marbella and Dubai. Struggling suburbs of course are everywhere.
SHOOT: My landlady went from living in a palatial Johannesburg house to squatting in the sauna room, cooking in the garage and renting out the rest to myself and another family. She is still struggling and trying to foist her electricty bill onto us.
SHOOT: My landlady went from living in a palatial Johannesburg house to squatting in the sauna room, cooking in the garage and renting out the rest to myself and another family. She is still struggling and trying to foist her electricty bill onto us.
Spokesman Rael Levitt said even those with ultra-luxury homes were being forced to sell at a deep discount. "As the residential property recession grows in South Africa, jumbo mortgage loan defaults (which are defined as outstanding mortgage of over R5 million) is growing," Levitt said. Mortgage stress, where bondholders were in arrears for two months or less, was showing a sharp increase across the board, from 75,000 in the third-quarter of 2008 to 130,000 in the last. Severe mortgage stress in turn, where bondholders are over four months in arrears, catapulted from 8,000 in the second quarter of 2008 to over 35,000 in the last quarter. Properties in previously unaffected upmarket suburbs like Clifton, Franschhoek, Camps Bay, Plettenberg Bay, Sandhurst, Hyde Park and Umhlanga had started to trickle onto the market. These homeowners, who had borrowed against their properties, were now in trouble.
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