Thursday, November 24, 2011
Gevaarligte vir huisverhuurders
Gevaarligte vir huisverhuurders: Die betalingsgedrag van residensiële huurders was in die derde kwartaal van vanjaar bestendig, maar waarskuwingsligte begin flikker. Huurders in die huurgeld-kategorie R3 000 en minder en R12 000 en meer per maand was in die kwartaal onder druk, blyk uit die nuutste huurmonitordata van die Tenant Profile Network (TPN).
Sunday, October 16, 2011
House price growth!
House price growth has slowed to a crawl in September according to a report by Standard Bank. Standard Bank's median house price (smoothed) posted a growth rate of 0.6 percent year on year (y/y) in September, from 1.6 percent y/y in August whereas growth in real terms remained negative. The slowdown in house price growth runs parallel with the weakening SA economy.
GDP growth slowed to 1.3 percent quarter on quarter (q/q) seasonally adjusted annual rate (saar) in the second quarter of 2011, from 4.5 percent q/q (saar) in the first quarter. Home prices still falling.
Trends in house prices remained mixed in the South African housing market, based on the Absa house price indices for small, medium-sized and large houses, for which the bank had approved mortgage finance. House prices still mixed.
John Loos, property strategist at FNB Home Loans said that estate agents estimated a decline in the percentage of sellers selling their homes in order to downscale due to financial pressure, from 25% in the previous quarter to 19%. He said that this could be the start of results from the long process of household debt-to-income reduction, and other measures aimed at rebuilding balance sheets, coming through. "It is too early to tell though, and another few data points will be required. But we do know from SARB (South African Reserve Bank) data that the decline in the household debt-to-disposable income ratio, and thus the debt-service ratio, continues."
The third quarter survey, undertaken in August, points towards a slight increase in residential demand, and some mild improvement in estate agent confidence, but it's not a market with any strong direction. Households debt pressure reducing.
Info supply by CyberProp!
GDP growth slowed to 1.3 percent quarter on quarter (q/q) seasonally adjusted annual rate (saar) in the second quarter of 2011, from 4.5 percent q/q (saar) in the first quarter. Home prices still falling.
Trends in house prices remained mixed in the South African housing market, based on the Absa house price indices for small, medium-sized and large houses, for which the bank had approved mortgage finance. House prices still mixed.
John Loos, property strategist at FNB Home Loans said that estate agents estimated a decline in the percentage of sellers selling their homes in order to downscale due to financial pressure, from 25% in the previous quarter to 19%. He said that this could be the start of results from the long process of household debt-to-income reduction, and other measures aimed at rebuilding balance sheets, coming through. "It is too early to tell though, and another few data points will be required. But we do know from SARB (South African Reserve Bank) data that the decline in the household debt-to-disposable income ratio, and thus the debt-service ratio, continues."
The third quarter survey, undertaken in August, points towards a slight increase in residential demand, and some mild improvement in estate agent confidence, but it's not a market with any strong direction. Households debt pressure reducing.
Info supply by CyberProp!
Thursday, August 4, 2011
House prices show growth, buy now
South African house prices have grown to 4.6 percent in July from 3.1 percent in June as revealed in the FNB House Price Index released yesterday.
FNB Home Loans property strategist, John Loos says in real terms when adjusted for consumer price inflation, the year-on-year growth for June remained in negative territory to the tune of -1.8 percent.
“On a month-to-month basis, average price growth was unchanged at 0.73 percent while the average price of properties transacted in the index was R815. 511,” says Loos.
He explains that the acceleration in the year-on-year rate of house price inflation is believed to still be the lagged impact of a mild uptick in residential demand as reported in the FNB Estate Agent Survey. Two further cuts in interest rates in late 2010 being the other factor.
The highest point in real terms growth was recorded in February 2008 in the FNB House Price Index’s 11 year history. The cumulative downward adjustment in real house prices from the high of February 2008 to July 2011 measures -14.7 percent. In nominal terms, the index revealed a mild cumulative increase of +6.4 percent from February 2008 to July 2011.
“Our expectation is for the recent acceleration in house price growth to be short-lived, with a slowing in the pace of growth resuming late in 2011,” Loos said.
The property market may not be what it used to be what with many people battling to secure home loans and some home owners selling to become tenants. Estate agents, however, say in some areas, they are seeing an increase in property buyers. Even with house prices declining, with careful search one can easily find bargains.
Info supplied by Property24.com
FNB Home Loans property strategist, John Loos says in real terms when adjusted for consumer price inflation, the year-on-year growth for June remained in negative territory to the tune of -1.8 percent.
“On a month-to-month basis, average price growth was unchanged at 0.73 percent while the average price of properties transacted in the index was R815. 511,” says Loos.
He explains that the acceleration in the year-on-year rate of house price inflation is believed to still be the lagged impact of a mild uptick in residential demand as reported in the FNB Estate Agent Survey. Two further cuts in interest rates in late 2010 being the other factor.
The highest point in real terms growth was recorded in February 2008 in the FNB House Price Index’s 11 year history. The cumulative downward adjustment in real house prices from the high of February 2008 to July 2011 measures -14.7 percent. In nominal terms, the index revealed a mild cumulative increase of +6.4 percent from February 2008 to July 2011.
“Our expectation is for the recent acceleration in house price growth to be short-lived, with a slowing in the pace of growth resuming late in 2011,” Loos said.
The property market may not be what it used to be what with many people battling to secure home loans and some home owners selling to become tenants. Estate agents, however, say in some areas, they are seeing an increase in property buyers. Even with house prices declining, with careful search one can easily find bargains.
Info supplied by Property24.com
Thursday, May 5, 2011
Your Bond is still the best saving mechanism
Article By Adrian Goslett - RE/MAX 05 May 2011
South Africans typically have a bad savings culture, and consumer behaviour shows a tendency by South Africans to rather ‘borrow to buy’ instead of saving up for a purchase. Saving takes discipline and means spending less than you earn, but how many people, despite numerous warnings over the years, have actually adjusted their lifestyle and spending habits to accommodate some kind of savings? Not many at all according to Glenn Norton, Broker/Owner of RE/MAX Masters, which operates in the Johannesburg suburbs of Bryanston and Weltevreden Park.
Norton says that what many people don’t realise is that a small saving can actually have a huge effect, especially if that saving is on a bond. He cites an example of a home loan of R750 000, paid over a 20-year period at 9% interest, where monthly instalments would be roughly R6747. “If you had to pay R100 extra into your bond each month, you could save in the region of R40713 over the bond period. If you had to pay in an extra R200 each month into this bond, you would save around R77 271 over the total bond period,” Norton explains.
He says that most people eat out at a restaurant at least twice each month, and since saving involves a change in consumer behaviour, Norton says homeowners should consider only eating out once a month instead, for example, and putting that the money that would have been spent at the restaurant into the bond instead. “An average meal out for two people could come to around R400, but if you had to rather pay that into the bond as mentioned above each month, you would save a whopping R140 382 over the term of the bond.”
But Norton says just because you are saving into your bond doesn’t mean you should reduce the term. He says that by comparison, if you had to put R10 000 into a typical savings account at the bank, the most interest you could expect to earn would be 5% at a push. But one capital payment of this amount into the bond would save you an effective 9% interest.
“As your salary increases, so too should your bond repayments, and if you get a bonus or any other lump sum payouts, consider paying some or all of it into your bond,” advises Norton. “If you had to put in a lump sum of R10 000 every year for ten years and pay an extra R800 into your bond each month, you could save over R200 000 in interest and could shorten your payment term by about five years.”
Adrian Goslett, CEO of RE/MAX of Southern Africa, notes that the Savers Review released by the South African Savings Institute in November last year indicated that many South Africans have in fact started to increase their level of savings. Savings in South Africa as a percentage of GDP were at 18.8% in 2008, and while they decreased to 18,4% during 2009, undoubtedly as a result of recessionary effects, they increased to 20,4% in 2010. However, research indicates that different income groups view savings differently, and according to the Bureau of Market Research, low and middle income groups lack confidence in their ability to save. However, it is in these income groups where a culture of saving would be most beneficial.”
“What could you do with an extra R100 000 or R200 000?” asks Norton. “Even with the property market having experienced a decline, paying money into your bond is still the best form of saving. Over the past ten years property has outperformed most other investments, and property remains one of the best asset classes in which to invest,” he concludes
Article posted by Private Propety
South Africans typically have a bad savings culture, and consumer behaviour shows a tendency by South Africans to rather ‘borrow to buy’ instead of saving up for a purchase. Saving takes discipline and means spending less than you earn, but how many people, despite numerous warnings over the years, have actually adjusted their lifestyle and spending habits to accommodate some kind of savings? Not many at all according to Glenn Norton, Broker/Owner of RE/MAX Masters, which operates in the Johannesburg suburbs of Bryanston and Weltevreden Park.
Norton says that what many people don’t realise is that a small saving can actually have a huge effect, especially if that saving is on a bond. He cites an example of a home loan of R750 000, paid over a 20-year period at 9% interest, where monthly instalments would be roughly R6747. “If you had to pay R100 extra into your bond each month, you could save in the region of R40713 over the bond period. If you had to pay in an extra R200 each month into this bond, you would save around R77 271 over the total bond period,” Norton explains.
He says that most people eat out at a restaurant at least twice each month, and since saving involves a change in consumer behaviour, Norton says homeowners should consider only eating out once a month instead, for example, and putting that the money that would have been spent at the restaurant into the bond instead. “An average meal out for two people could come to around R400, but if you had to rather pay that into the bond as mentioned above each month, you would save a whopping R140 382 over the term of the bond.”
But Norton says just because you are saving into your bond doesn’t mean you should reduce the term. He says that by comparison, if you had to put R10 000 into a typical savings account at the bank, the most interest you could expect to earn would be 5% at a push. But one capital payment of this amount into the bond would save you an effective 9% interest.
“As your salary increases, so too should your bond repayments, and if you get a bonus or any other lump sum payouts, consider paying some or all of it into your bond,” advises Norton. “If you had to put in a lump sum of R10 000 every year for ten years and pay an extra R800 into your bond each month, you could save over R200 000 in interest and could shorten your payment term by about five years.”
Adrian Goslett, CEO of RE/MAX of Southern Africa, notes that the Savers Review released by the South African Savings Institute in November last year indicated that many South Africans have in fact started to increase their level of savings. Savings in South Africa as a percentage of GDP were at 18.8% in 2008, and while they decreased to 18,4% during 2009, undoubtedly as a result of recessionary effects, they increased to 20,4% in 2010. However, research indicates that different income groups view savings differently, and according to the Bureau of Market Research, low and middle income groups lack confidence in their ability to save. However, it is in these income groups where a culture of saving would be most beneficial.”
“What could you do with an extra R100 000 or R200 000?” asks Norton. “Even with the property market having experienced a decline, paying money into your bond is still the best form of saving. Over the past ten years property has outperformed most other investments, and property remains one of the best asset classes in which to invest,” he concludes
Article posted by Private Propety
Thursday, April 14, 2011
Pricing is the key to selling property
According to a recent FNB Estate Agent Survey, the average time properties remain on the market is around 19 weeks and 1 day, with 85 percent of sellers having to drop their asking prices, which is an indication of unrealistic pricing in the market.
Sellers can exercise their own initiative and get an online valuation report, which allows them to establish a market-related price and check this against the pricing recommendation from the agent.
When asking prices are set in line with current market conditions, the average time a property is on the market is significantly reduced and the chances of a quick and successful sale are dramatically improved.
Pricing a property correctly from the start can save sellers much wasted time and stress. There is a surplus of homes for sale at the moment, so buyers are often spoilt for choice and will not fall for an over-inflated price. Although sellers frequently feel that their home is worth more and are often disappointed at an agent’s pricing recommendation, the market ultimately dictates what a buyer will offer.
Also, homebuyers typically only look at those properties that are within a price range that they can afford, says Lee Siebert, Broker/Owner of RE/MAX Helderberg. The trick is to get the pricing just right to suit the current state of the market. So what is real market value?
“Essentially, real market value refers to what a seller could expect a buyer to pay for their property in a competitive market. However, it must be remembered that even though the market value of your home is usually set by a professional, in the end the true market value is determined mainly by what a buyer is willing to pay for the property,” says Siebert.
Siebert says that the easiest and most accurate method of establishing the market value of your home is to get an experienced real estate agent to evaluate your property. The method used by most estate agents is a comparative market analysis (CMA).
“By analysing what houses of a similar size as yours sold for over the last three to six months, as well as determining the average price per square metre the homes in your area are commanding, the CMA provides agents with a solid price base to use to determine a reasonable asking price for the property in question,” says Siebert.
Sellers can also exercise their own initiative and get an online valuation report that provides information on what similar properties in the street, complex or suburb have actually sold for. This allows them to establish a market-related price and check this against the pricing recommendation from the agent.
However, there is more to setting the right asking price than simply establishing a value based on a comparative market analysis, says Adrian Goslett, CEO of RE/MAX of Southern Africa. “While such an analysis will provide a crucial guideline in terms of the pricing a particular type of property in the specific area, other factors should be taken into account, most importantly the psychological effect of a certain price range.
“This is not an exact science, but rather a skill acquired through knowledge of the specific market and experience with buyers, and highlights the value an experienced estate agent can bring to a property sale,” he says.
Siebert agrees that any experienced agent will take into account the other factors that will affect the value of a property. These include market demand and the condition of the property, its size and elevation, does it have a view, the state of the garden, the age and modernity of the kitchen and the bathrooms, various security features, as well as various cosmetic updates, such as the flooring, fireplaces, light fixtures, and whether the home has been painted with a fresh coat of paint for example.
But the main element in determining an accurate value is current market conditions. The recent FNB Estate Agent Survey revealed that the percentage of sellers having to drop their asking prices increased from 80% in the previous quarter to 85% in the first quarter 2011 survey, with the average price drop estimated at -12%.
“This indicates that many sellers in South Africa are still hoping to obtain unrealistic prices given the current state of the market,” says Siebert. “The consequences of unrealistic pricing are clearly reflected in the average time properties remain on the market.”
The need to adjust house prices to suit current market conditions is not a South African phenomenon. Sellers in property markets across the globe are facing similar challenges, and although the exact percentages vary from one market to another, the trend of reducing asking prices is a global one.
For example, in the UK, it has been widely reported in the media that home owners are being forced to accept offers of 10% below the asking price in order to sell their properties. On the other side of the globe, data released by the Real Estate Institute of Western Australia reveals that 67% of sellers in Perth are prepared to drop the asking price by an average 6% to get a sale. Furthermore, the most recent data from Trulia.com, a real estate listings website in the US which tracks 50 major property markets in North America, shows that 20% of asking prices for current home listings were reduced at least once.
Siebert says that sellers in South Africa should take note of these global trends and apply the learning: setting a realistic selling price is only way to effectively sell a property in the shortest amount of time possible.
“The basic economic law of supply and demand will always prevail. When an oversupply situation exists, and the number of buyers is severely limited by the availability of finance, selling prices will be subdued and overpriced properties will simply not sell,” says Siebert.
Published by Property 24
Sellers can exercise their own initiative and get an online valuation report, which allows them to establish a market-related price and check this against the pricing recommendation from the agent.
When asking prices are set in line with current market conditions, the average time a property is on the market is significantly reduced and the chances of a quick and successful sale are dramatically improved.
Pricing a property correctly from the start can save sellers much wasted time and stress. There is a surplus of homes for sale at the moment, so buyers are often spoilt for choice and will not fall for an over-inflated price. Although sellers frequently feel that their home is worth more and are often disappointed at an agent’s pricing recommendation, the market ultimately dictates what a buyer will offer.
Also, homebuyers typically only look at those properties that are within a price range that they can afford, says Lee Siebert, Broker/Owner of RE/MAX Helderberg. The trick is to get the pricing just right to suit the current state of the market. So what is real market value?
“Essentially, real market value refers to what a seller could expect a buyer to pay for their property in a competitive market. However, it must be remembered that even though the market value of your home is usually set by a professional, in the end the true market value is determined mainly by what a buyer is willing to pay for the property,” says Siebert.
Siebert says that the easiest and most accurate method of establishing the market value of your home is to get an experienced real estate agent to evaluate your property. The method used by most estate agents is a comparative market analysis (CMA).
“By analysing what houses of a similar size as yours sold for over the last three to six months, as well as determining the average price per square metre the homes in your area are commanding, the CMA provides agents with a solid price base to use to determine a reasonable asking price for the property in question,” says Siebert.
Sellers can also exercise their own initiative and get an online valuation report that provides information on what similar properties in the street, complex or suburb have actually sold for. This allows them to establish a market-related price and check this against the pricing recommendation from the agent.
However, there is more to setting the right asking price than simply establishing a value based on a comparative market analysis, says Adrian Goslett, CEO of RE/MAX of Southern Africa. “While such an analysis will provide a crucial guideline in terms of the pricing a particular type of property in the specific area, other factors should be taken into account, most importantly the psychological effect of a certain price range.
“This is not an exact science, but rather a skill acquired through knowledge of the specific market and experience with buyers, and highlights the value an experienced estate agent can bring to a property sale,” he says.
Siebert agrees that any experienced agent will take into account the other factors that will affect the value of a property. These include market demand and the condition of the property, its size and elevation, does it have a view, the state of the garden, the age and modernity of the kitchen and the bathrooms, various security features, as well as various cosmetic updates, such as the flooring, fireplaces, light fixtures, and whether the home has been painted with a fresh coat of paint for example.
But the main element in determining an accurate value is current market conditions. The recent FNB Estate Agent Survey revealed that the percentage of sellers having to drop their asking prices increased from 80% in the previous quarter to 85% in the first quarter 2011 survey, with the average price drop estimated at -12%.
“This indicates that many sellers in South Africa are still hoping to obtain unrealistic prices given the current state of the market,” says Siebert. “The consequences of unrealistic pricing are clearly reflected in the average time properties remain on the market.”
The need to adjust house prices to suit current market conditions is not a South African phenomenon. Sellers in property markets across the globe are facing similar challenges, and although the exact percentages vary from one market to another, the trend of reducing asking prices is a global one.
For example, in the UK, it has been widely reported in the media that home owners are being forced to accept offers of 10% below the asking price in order to sell their properties. On the other side of the globe, data released by the Real Estate Institute of Western Australia reveals that 67% of sellers in Perth are prepared to drop the asking price by an average 6% to get a sale. Furthermore, the most recent data from Trulia.com, a real estate listings website in the US which tracks 50 major property markets in North America, shows that 20% of asking prices for current home listings were reduced at least once.
Siebert says that sellers in South Africa should take note of these global trends and apply the learning: setting a realistic selling price is only way to effectively sell a property in the shortest amount of time possible.
“The basic economic law of supply and demand will always prevail. When an oversupply situation exists, and the number of buyers is severely limited by the availability of finance, selling prices will be subdued and overpriced properties will simply not sell,” says Siebert.
Published by Property 24
Thursday, February 24, 2011
Start your own property portfolio
Article By Private Property Reporter 23 Feb 2011
Real estate is one of the most exciting and dynamic businesses to be involved in, and historically this is the best place to invest some of your hard earned cash. Many investors buy properties and bank them, and then sell the properties off once they have either served their purpose or have gained value.
At times the investor sells off a portion of the portfolio or a whole portfolio, but timing is the key factor. Most successful property owners, once having built a substantial portfolio prefer to hang on to their assets, and are loath to selling, as the buildings and properties bring in rental income.
If you want to start your own property portfolio, it would be advisable to bank your properties for a couple of years, and then sell them at a profit. A five to seven year period is often a good time.
Real estate is often perceived to be a cutthroat business and not for the faint of heart, but the adrenalin rush when a major deal comes together can beat no other! Properties to buy / properties for sale are always in big demand, and those that are good value for money – well there simply are not enough of them.
Many real estate developers and investors buy run down shopping centres, commercial buildings and warehousing for the sole purpose of fixing them up and selling them off at a profit. These are some of the most sought-after real estate investments. Although many prefer to hold onto them.
Residential property is also big business if you are looking to start your own property portfolio. There are many areas where you can buy houses in a poor condition at an excellent price, renovate and repair them and then rent them out to tenants. This is lucrative, but can sometimes prove to be tricky if you are unfortunate to get poor tenants, but on the other hand, if the tenants are reliable and good payers, this can be a wonderful way to earn extra income.
Start your own property portfolio bit by bit, and glean information from the experts who have walked the path before you. A good starting point is to put an excellent business plan together well before you decide to embark on this project, as you would do with any other business.
Buying properties at this point in time is a clever move if you have spare money to invest or if you want to get into the real estate business. Some property owners who are willing sellers are finding it tough to sell, as the recession has taken its toll over the past couple of years. This is when you will find an excellent buy and good value for your money.
With the real estate market climbing slowly back into recovery mode, strike while the iron is hot.
Buying low and selling high should be the mantra if you would like to start your own property portfolio.
Investors are spoilt for choice and have never been in a stronger position with such a variety of real estate available.
Borrowing money from banks and institutions is generally quite tough, but there are other ways of seeking the advice and borrowing money when buying and investing in real estate.
Equity companies are pro-active, and take small start-up businesses under their wings whilst growing the business, offering a hands-on approach and assisting with the management and the businesses that they support. These private equity companies are delighted to hear from you especially if your property investment business has potential.
Having the backing of a professional team to assist you along the way when starting up your own property portfolio is also important: these should include an attorney knowledgeable in property law, a really expert architectural and building team, someone who is reliable and honest to assist in renting out your property, and a reputable agent or broker to handle the sale of your property should the need arise.
The above pointers should help guide you in the right direction on how to start your own property portfolio.
Real estate is one of the most exciting and dynamic businesses to be involved in, and historically this is the best place to invest some of your hard earned cash. Many investors buy properties and bank them, and then sell the properties off once they have either served their purpose or have gained value.
At times the investor sells off a portion of the portfolio or a whole portfolio, but timing is the key factor. Most successful property owners, once having built a substantial portfolio prefer to hang on to their assets, and are loath to selling, as the buildings and properties bring in rental income.
If you want to start your own property portfolio, it would be advisable to bank your properties for a couple of years, and then sell them at a profit. A five to seven year period is often a good time.
Real estate is often perceived to be a cutthroat business and not for the faint of heart, but the adrenalin rush when a major deal comes together can beat no other! Properties to buy / properties for sale are always in big demand, and those that are good value for money – well there simply are not enough of them.
Many real estate developers and investors buy run down shopping centres, commercial buildings and warehousing for the sole purpose of fixing them up and selling them off at a profit. These are some of the most sought-after real estate investments. Although many prefer to hold onto them.
Residential property is also big business if you are looking to start your own property portfolio. There are many areas where you can buy houses in a poor condition at an excellent price, renovate and repair them and then rent them out to tenants. This is lucrative, but can sometimes prove to be tricky if you are unfortunate to get poor tenants, but on the other hand, if the tenants are reliable and good payers, this can be a wonderful way to earn extra income.
Start your own property portfolio bit by bit, and glean information from the experts who have walked the path before you. A good starting point is to put an excellent business plan together well before you decide to embark on this project, as you would do with any other business.
Buying properties at this point in time is a clever move if you have spare money to invest or if you want to get into the real estate business. Some property owners who are willing sellers are finding it tough to sell, as the recession has taken its toll over the past couple of years. This is when you will find an excellent buy and good value for your money.
With the real estate market climbing slowly back into recovery mode, strike while the iron is hot.
Buying low and selling high should be the mantra if you would like to start your own property portfolio.
Investors are spoilt for choice and have never been in a stronger position with such a variety of real estate available.
Borrowing money from banks and institutions is generally quite tough, but there are other ways of seeking the advice and borrowing money when buying and investing in real estate.
Equity companies are pro-active, and take small start-up businesses under their wings whilst growing the business, offering a hands-on approach and assisting with the management and the businesses that they support. These private equity companies are delighted to hear from you especially if your property investment business has potential.
Having the backing of a professional team to assist you along the way when starting up your own property portfolio is also important: these should include an attorney knowledgeable in property law, a really expert architectural and building team, someone who is reliable and honest to assist in renting out your property, and a reputable agent or broker to handle the sale of your property should the need arise.
The above pointers should help guide you in the right direction on how to start your own property portfolio.
Friday, February 18, 2011
Good time for buying property
Residential property prices declined in January 2011, albeit from a solid base following their strong recovery last year. However, according to bond originator ooba conditions are favourable for homebuyers to consider getting onto the property ladder.
Market conditions are now favourable for homebuyers to consider getting onto the property ladder, says ooba.
The latest statistics from the oobarometer price index showed a year-on-year decline in the average purchase price of 6.3% to R797 011 in January 2011 from R850 513 a year earlier. The average purchase price of a first time buyer declined by a modest 1.6% year-on-year to R576 675, from R585 992 a year ago.
According to ooba CEO, Saul Geffen, while residential property prices are coming off their recent highs, the period of deflation is likely to be short lived with expectations for overall flat growth for 2011.
Additional statistics also tracked by ooba show there has been a continued trend by South Africa’s major lenders to ease up on their lending criteria. “Over the last year we have seen the main lenders continue to relax their lending criteria and this has continued in January 2011 with the size of the deposit buyers are required to put down showing a significant decline.”
In January the average deposit as a percentage of the purchase price was also down by 41.8% year on year to R117 396, equivalent to 14.7% of the purchase price. The average initial decline ratio also declined by 4.4% to 46.0% in January 2011 from 50.4% a year ago. There was further positive news in January as the effective approval ratio increased by 6.0% year-on-year to 65.6%.
Geffen says in addition to the improved lending environment, the recent decline in prices presents an ideal bargaining opportunity for new homebuyers. “For those homebuyers who have all their ducks in a row, including a deposit to put down, now could be the perfect time to begin negotiations on a property.”
Comments published by Property 24
Market conditions are now favourable for homebuyers to consider getting onto the property ladder, says ooba.
The latest statistics from the oobarometer price index showed a year-on-year decline in the average purchase price of 6.3% to R797 011 in January 2011 from R850 513 a year earlier. The average purchase price of a first time buyer declined by a modest 1.6% year-on-year to R576 675, from R585 992 a year ago.
According to ooba CEO, Saul Geffen, while residential property prices are coming off their recent highs, the period of deflation is likely to be short lived with expectations for overall flat growth for 2011.
Additional statistics also tracked by ooba show there has been a continued trend by South Africa’s major lenders to ease up on their lending criteria. “Over the last year we have seen the main lenders continue to relax their lending criteria and this has continued in January 2011 with the size of the deposit buyers are required to put down showing a significant decline.”
In January the average deposit as a percentage of the purchase price was also down by 41.8% year on year to R117 396, equivalent to 14.7% of the purchase price. The average initial decline ratio also declined by 4.4% to 46.0% in January 2011 from 50.4% a year ago. There was further positive news in January as the effective approval ratio increased by 6.0% year-on-year to 65.6%.
Geffen says in addition to the improved lending environment, the recent decline in prices presents an ideal bargaining opportunity for new homebuyers. “For those homebuyers who have all their ducks in a row, including a deposit to put down, now could be the perfect time to begin negotiations on a property.”
Comments published by Property 24
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About Me
- Jacques
- Since 1997 am I a full time real estate professional with all the basic qualifications and registrations required by the EAAB but also obtained a Diploma in Sectional Scheme Management (STSM) from the UCT