BetterBond statistics shows huge transformation in real estate market

BetterBond is South Africa’s biggest mortgage originator, which represent 25% of all residential mortgage bonds being registered in the Deeds Office and include applications to and bond grants from all the major lending banks in SA.

Transformation in the SA real estate market has come a long way, with almost half of all home loan applications now being made by black buyers, compared with only about 12% a decade ago.

In the latest statistics from BetterBond this is evident that black homebuyers, including those in the affordable sector, have accounted for some between 45% and 48% of all bond applications in the past three months, compared with 43% in the same months of last year. In addition, black buyers, mostly who are also first-time buyers, now account for between 37% and 39% of home loan approvals monthly.  The overall number of home loan applications made in June was 5% up on the same month of 2011, following a 24% year-on-year increase in May.

BetterBond CEO Rudi Botha says that it is encouraging to see such an increase in the number of black buyers coming into the market and achieving bond approval especially in the light of the slowing economy and slow progress on job creation. It suggests that there is a growing appreciation of the wealth-creation potential of home ownership. It is also a reflection that consumers are regaining confidence in the real estate market, while prices which are still at low and levels are also boosting investment buying.

According to this statistics it is also a clear indication of the effect that the current shortage of good rental housing stock and rising monthly rentals are having on the market, in that more and more tenants are considering that it might now be cheaper to buy than to rent and exploring the possibility of becoming homeowners in their own right.  This trend is being increased by the current low interest rates and by improving access to bond finance, particularly for first-time buyers.

At this stage, the unstable stock markets are restoring interest in brick-and-mortar investments, and the returns to be made from well-selected rental properties are in most cases also better than one can achieve on cash in the bank.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us