Ooba has released some worrying figures for February concerning the amount of bond applications that are denied. In February last year the amount of bonds that were declined stood at 41.3%, this year that figure stood 61.2% for February.
This is troubling for the property market which is currently under alot of strain as house prices have either showed very little growth or a drop in value.
We are all aware of the NCA making it more difficult to obtain any kind of loan or line of credit, the banks themselves have also made their lending criteria alot harder to achieve by demanding larger deposits which many people cannot accommodate.
Today was the last day an emergency rate cut might have been announced, (at the time of publication it was still not confirmed) but there were conflicting opinions on whether or not this would have a positive or negative effect on the property market.
Many homeowners are of the opinion that a small rate cut now would not help them enough as they are already too close to losing their properties, they are hoping for a drastic rate cut that would ease their financial burden substantially.
Maybe the banks will ease up a little and allow those who fall just short of meeting their lending criteria to be approved.
What do you think? Will March be a better month for the property market?
This is bad news for banks and property market, but good news for property investors.
The bank have it bad. They are not able to write new business and there current customers are going for debt review. In some cases the bank is forced by the NCA to write off all the debt. So if you have bank shares on the JSE…SELL!
If the bank are not giving loans, the property market will stay depressed for longer. But property investors will have more time to get bargains.
Tito missed the opportunity to drop i by 1% last week. Hopefully the will wake up and drop 2% in April. They are truly not aware what is going on in the rest of the world. And it will come to SA. You don’t need Ecom 101 for that. Does Tito have Econ 101?