Grocott's Mail
  • NEWS
    • Courts & Crime
    • Features
    • Politics
    • People
    • Health & Well-being
  • SPORT
    • News
    • Results
    • Sports Diary
    • Club Contacts
    • Columns
    • Sport Galleries
    • Sport Videos
  • OPINION
    • Election Connection
    • Makana Voices
    • Deur ‘n Gekleurde Bril
    • Newtown… Old Eyes
    • Incisive View
    • Your Say
  • ARTSLIFE
    • Cue
    • Makana Sharp!
    • Visual Art
    • Literature
    • Food & Fun
    • Festivals
    • Community Arts
    • Going Places
  • OUR TOWN
    • What’s on
    • Spiritual
    • Emergency & Well-being
    • Safety
    • Civic
    • Municipality
    • Weather
    • Properties
      • Grahamstown Properties
    • Your Town, Our Town
  • OUTSIDE
    • Enviro News
    • Gardening
    • Farming
    • Science
    • Conservation
    • Motoring
    • Pets/Animals
  • ECONOMIX
    • Business News
    • Entrepreneurship
    • Personal Finance
  • EDUCATION
    • Education NEWS
    • Education OUR TOWN
    • Education INFO
  • Covid-19
  • EDITORIAL
Facebook Twitter Instagram
Trending
  • In the words of Nelson Mandela, “To deny people their human rights is to challenge their very humanity”
  • Flooding at the James Kleynhans Water Treatment Works
  • Avbob 2023 Poetry Competition Second Place: Jeannie Wallace McKeown
  • Avbob 2023 Poetry Competition Winner: Sithembele Isaac Xhegwana
  • Residents of Extensions Nine, 10, Transit Camp, Phumlani and Enkanini voice discontent!
  • Makhanda Creatives Speak Out
  • Running towards a drug and alcohol-free Makhanda
  • What’s On 23 – 30 March
Facebook Twitter Instagram
Grocott's Mail
  • NEWS
    • Courts & Crime
    • Features
    • Politics
    • People
    • Health & Well-being
  • SPORT
    • News
    • Results
    • Sports Diary
    • Club Contacts
    • Columns
    • Sport Galleries
    • Sport Videos
  • OPINION
    • Election Connection
    • Makana Voices
    • Deur ‘n Gekleurde Bril
    • Newtown… Old Eyes
    • Incisive View
    • Your Say
  • ARTSLIFE
    • Cue
    • Makana Sharp!
    • Visual Art
    • Literature
    • Food & Fun
    • Festivals
    • Community Arts
    • Going Places
  • OUR TOWN
    • What’s on
    • Spiritual
    • Emergency & Well-being
    • Safety
    • Civic
    • Municipality
    • Weather
    • Properties
      • Grahamstown Properties
    • Your Town, Our Town
  • OUTSIDE
    • Enviro News
    • Gardening
    • Farming
    • Science
    • Conservation
    • Motoring
    • Pets/Animals
  • ECONOMIX
    • Business News
    • Entrepreneurship
    • Personal Finance
  • EDUCATION
    • Education NEWS
    • Education OUR TOWN
    • Education INFO
  • Covid-19
  • EDITORIAL
Grocott's Mail
You are at:Home»Uncategorized»Rate increases fail to dent housing demand
Uncategorized

Rate increases fail to dent housing demand

Grocott's MailBy Grocott's MailApril 12, 2016No Comments2 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email

In the financial year ending in February, the average price of homes on which new bonds were approved rose by 6.3 percent to just over R1 million, according to the latest statistics from BetterLife Home Loans.

In the financial year ending in February, the average price of homes on which new bonds were approved rose by 6.3 percent to just over R1 million, according to the latest statistics from BetterLife Home Loans.

The company's chief executive officer, Shaun Rademeyer said the monthly household income required to qualify for the average loan has risen less than 1 percent in the past 12 months, despite the 6.3 percent rise in house prices, largely because so many prospective borrowers have been able to put down bigger deposits. 

“What is more, greater financial awareness and discipline as regards personal debt management and savings has facilitated sustained demand in the residential property sector over the past 12 months – and in the number of new home loan applications – even though there have been three interest rate increases in that time.

These figures also show that over the same period, the average approved bond size was R811 000, and that 52 percent of borrowers in the past 12 months were able to pay a deposit of one-fifth of the purchase price, or more, when applying for their home loans.

“This is a far cry from the days when 100 percent or no-deposit loans were the norm,” says Rademeyer, “and it is very much in line with our on-the-ground experience, which is that South African consumers have become much more informed about their finances in general, and are putting a lot more financial preparation into becoming home owners than they did a few years ago.

“Many of those coming into the market as home buyers now have in fact been saving carefully for two to three years to accumulate a sizeable deposit, because they are more aware of the benefits of doing so when it comes to qualifying for a loan, and also keeping monthly bond repayments down in the face of rising interest rates.”

This bodes well for the future of the market as buyers move up the property ladder, says Rademeyers, as does the fact that the banks are still keen on new home loan business.

Previous ArticleBreast milk is essential medicine – experts
Next Article Next step for water, sanitation forum
Grocott's Mail

Comments are closed.

Tweets by Grocotts
Newsletter



Listen

The Rhodes University Community Engagement Division has launched Engagement in Action, a new podcast which aims to bring to life some of the many ways in which the University interacts with communities around it. Check it out below.

Humans of Makhanda

Humans of Makhanda

Weather    |     About     |     Advertise     |     Subscribe     |     Contact     |     Support Grocott’s Mail

© 2023 Maintained by School of Journalism & Media Studies.

Type above and press Enter to search. Press Esc to cancel.