[JMBroad]

So you sold those apartments with the same gains mentioned before in 2006.

Two years later, a developer is offering you a similar product at 2006 prices and you think they are overpriced?

I believe I know understand all of your posts since day 1. Your personal frame of reference to which you are benchmarking the market today in Natal is against your experience from 2002 to 2006. In other words, you are disheartened by the market because you can no longer earn net 85% capital appreciation per annum for 4 years solid.

Most investors don't have that to compare to. They compare what they can get back from investing in property in Natal vs what they would get if they put it in the bank in the corner or invest in another property in another market. Add to the returns the opportunity of having a place to holiday in for 4-5 years after completion before they sell (assuming they are planning on a 10 year exit) and 99% of the time the results they can get compared to their benchmark is a vast improvement.

So yes, I totally agree with you and it is very unfortunate that we can no longer get 340% net capital appreciation on property in Natal anymore. But there is still a lot of money to be made in the market and there are a lot of opportunities at the right price.