select
|

Younger buyers getting more bonds

Well over 60% of home loans granted are currently going to people between the ages of 30 and 50, but there has been slight increase in the number granted to those between 30 and 40 and a decline in the number granted to those between 40 and 50 over the past six months (see graph)

The latest statistics from BetterBond, SA’s biggest mortgage originator, also show that there has been a steady decrease in the percentage of loans granted to people over the age of 50 for the past year, despite the fact that from this age on, an increasing number of people are inclined to sell up their family homes and downsize to smaller properties or retirement villages.

The implication, says BetterBond CEO Rudi Botha, is that a significant number are now either using the equity built up in their large properties to pay cash for smaller homes, or perhaps delaying the move from their family homes until home prices are more favourable.

“An encouraging development in the past 12 months, however, is that the percentage of loans being granted to buyers between the ages of 20 and 30 – who are typically first-time buyers – has gone up substantially, from about 16,5% to almost 21%,” he says.

“Taking into account that the total number of loan applications has increased by 45% in the past 12 months, this indicates that there is a healthy amount of ‘new blood’ coming into the market that will, in due course, result in an upward movement of prices.”

Meanwhile, the BetterBond stats also show which areas are most active in terms of bond grants, with 80% of grants currently pretty evenly divided between buyers in Greater Pretoria, the Northern and Western suburbs of Johannesburg, the Western Cape and KwaZulu-Natal.

And according to these figures, the average loan amount currently being granted in Johannesburg North and West is now around R837 000 (compared to R840 000 a year ago) and the average in Greater Pretoria is R719 000 (R729 000), followed by the Western Cape at R700 000 (R656 000) and KZN at R645 000 (R659 000).




  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK