Home loans dry up

Sneeky

Sneeky

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Estate agents reveal shock picture; expert warns of “terrible quarter” for property-related businesses.
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Would be interesting to hear comments about this. Is this going to be the decisive nail in the crazy price growth coffin?

A crash in the property market is not expected.

Only if banks have been reckless in granting credit in the past, can we expect a "crash", was Rode's message.
Nevertheless, while it won't be "doomsday", it will be a "terrible quarter" for those who operate in the residential property market, he predicted.
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Bank would never do that would they :rolleyes:

http://www.moneyweb.co.za/mw/view/mw/en/page38?oid=142844&sn=Detail

and another
http://www.moneyweb.co.za/mw/view/mw/en/page47?oid=142771&sn=Detail
 
you may find price of property would be 'priced' to sell and not at some exaggerated level - even at a more reasonable level, NCA is a definite bottleneck.
I would like to know how this is going to affect banks and their whole strategy of providing loans to people of generally lesser means? From what I've read, the banks have had long enought to prepare for this, don't think they have prepared as well as they could/should have! Could also have negative repurcussions when banks report their quarterly figures!
 
How can we feel sorry for agents? I feel sorry for the realy hard working (and long standing) ones who have really committed themselves to the career of selling houses...
Suddenly every tom dick and harry thinks they can make a killing selling property... not enough stock, too many agents... push prices up so you can get by on less sales. Who suffers?
 
I feel sorry for myself who are still renting and still have to buy a house:mad:

I should have bought long ago. R500 000 for a smallish townhouse and with my R400 house subsidy I dont think ill qualify any time soon.
 
I also feel sorry for myself, I am struggling to sell my house *shakes fist at seeff*, I have moved into a new place in another city to be closer to my work, and now I am constantly on all fours applying the ky, as I am being royaly screwed
 
I have a approved pledge/bond from a bank and am looking to buy. Have been holding out for a bit as I believe that home owners looking to sell or trade up, as well as developers, will start to feel the pinch now.
There must be an increasing time that property stays on the market now before it is sold.
I read some figures a year or 2 ago comparing the number of registered estate agents in SA then to 10 years prior. Massive growth. These people will also really struggle now.

I suppose one needs to distinguish between the various price ranges of property, as some will come under more pressure than others.
There must be still a massive demand for middle to low cost housing but salaries are not keeping pace, just look at the reasons why the public servants are on strike now.
Interesting though, need a 'working' crystal ball badly :D
 
Sneeky said:
I have a approved pledge/bond from a bank and am looking to buy. Have been holding out for a bit as I believe that home owners looking to sell or trade up, as well as developers, will start to feel the pinch now.
There must be an increasing time that property stays on the market now before it is sold.
I read some figures a year or 2 ago comparing the number of registered estate agents in SA then to 10 years prior. Massive growth. These people will also really struggle now.

I suppose one needs to distinguish between the various price ranges of property, as some will come under more pressure than others.
There must be still a massive demand for middle to low cost housing but salaries are not keeping pace, just look at the reasons why the public servants are on strike now.
Interesting though, need a 'working' crystal ball badly :D
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I basically blame useless estate agents. I would not cross the street to urinate on them if they were on fire!!

The house next door to us, small little two bedroom, one bathroom. Sold for R600k after one month. My house, 3 bedrooms, 2 full bathrooms, and twin garage, plus a huge 2 bedroom flat, still struggling to sell it at R700k. And why, freakin seeff has tied me in for 3 months on a possible sell, which has gone south after the first two months, and now I am stuck till the end of june (TG its this friday), and basically then start from scratch all over again
 
With the effects of this new act, and the rising interest rates, there is going to be increasing downward pressure on house prices I reckon. Normally such things take about 6 months to be really felt, so if I were in the market, I would wait.
 
Gothan said:
I basically blame useless estate agents. I would not cross the street to urinate on them if they were on fire!!

The house next door to us, small little two bedroom, one bathroom. Sold for R600k after one month. My house, 3 bedrooms, 2 full bathrooms, and twin garage, plus a huge 2 bedroom flat, still struggling to sell it at R700k. And why, freakin seeff has tied me in for 3 months on a possible sell, which has gone south after the first two months, and now I am stuck till the end of june (TG its this friday), and basically then start from scratch all over again
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That was a bad Mandate decision there in lieu of the NCA implementation date of the 1st of June.:(
 
BTTB said:
That was a bad Mandate decision there in lieu of the NCA implementation date of the 1st of June.:(
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Please dont remind me. In the beginning the agent was full of positive faadback:"No dont worry, they are making excellent progress, showing every weekend" to "they want the house so badly, they might even consider renting out their place if they cannot sell it"

Till about a month ago, when it suddenly changed to, well they wont be able to afford it if they cannot sell their place.

So yes I am still shining my shoes with my butt by regurarly kicking myself
 
Gothan said:
Please dont remind me. In the beginning the agent was full of positive faadback:"No dont worry, they are making excellent progress, showing every weekend" to "they want the house so badly, they might even consider renting out their place if they cannot sell it"

Till about a month ago, when it suddenly changed to, well they wont be able to afford it if they cannot sell their place.

So yes I am still shining my shoes with my butt by regurarly kicking myself
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It can't all be bad.
You still own your house which is not a bad investment.
Not sure how many Buyers will qualify for Home Loans since 1st June?
Banks seem to be finding their feet at present on this accord.
Unless you have to sell because you are moving or you cannot pay your Bond you could always sit tight. You will no doubt be looking for another Agent or even market it yourself.
 
BTTB said:
It can't all be bad.
You still own your house which is not a bad investment.
Not sure how many Buyers will qualify for Home Loans since 1st June?
Banks seem to be finding their feet at present on this accord.
Unless you have to sell because you are moving or you cannot pay your Bond you could always sit tight. You will no doubt be looking for another Agent or even market it yourself.
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Yip that is the plan, on the good side, the time it will take, will allow the banks to find their feet and the market to settle, as well as remove the backlog from the deeds office because of the strike.

Remember the glass is always half full, ok well until I gobble it down and burp out all the good luck
 
From various readings it seems prices will at worst be flat rather than actually fall (in nominal terms).
 
air said:
you may find price of property would be 'priced' to sell and not at some exaggerated level - even at a more reasonable level, NCA is a definite bottleneck.
I would like to know how this is going to affect banks and their whole strategy of providing loans to people of generally lesser means? From what I've read, the banks have had long enought to prepare for this, don't think they have prepared as well as they could/should have! Could also have negative repurcussions when banks report their quarterly figures!
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Indeed a problem since a main thrust of the NCA is to prevent people borrowing more than they can afford. If you earn R2000 per week and you are paying R2000 per week in loan repayments - you cannot borrow any more. If you earn R2000 per week and have no existing debt you cannot borrow R20,000,000.

The basic banking model could be made easier to use. People with lower earnings should get the same lending rates as those with more money and the fees must align with costs. There should be more flexibility in repayments - you can pay more/get slightly behind without penalty. If you get into difficulty with repayments you should be able to negotiate a lower rate/repayment holiday, but must get the loan back on track within an agreed timeframe.

This done, banking remains a business and if you must make the repayments albeit with friendlier rules. If you've borrowed more than you can afford expect the owner of those items (i.e., the bank) to want them back.

Also people should save for stuff. Don't pay the bank any more interest than you have to. If you can't afford to save you can't afford to borrow either.
 
i think renting is the worst thing a person can do

i know ppl who have rented for years, its basically throwing your money down a drain

your paying of someone's house/flat whateva and at the end of the day you leave there with nothing but a ton of money into someone else's house

rather buy something even if its smaller than you need
 
Those ABSA guys must be smoking something good, cause in reality I dont think house prices are climbing at that rate. Flat is a better way to describe house price growth.
 
killadoob said:
i think renting is the worst thing a person can do

i know ppl who have rented for years, its basically throwing your money down a drain

your paying of someone's house/flat whateva and at the end of the day you leave there with nothing but a ton of money into someone else's house

rather buy something even if its smaller than you need
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I will second you on that one killaboob. :)

However there is stages in one's life where buying is out of the question.
My wife and I rented for 7 years before we bought a property.
All the work done on the rented house/flat and garden was never appreciated.
Actually the lovely gardens left behind were just neglected thereafter in every instance.
 
rsachoc said:
Those ABSA guys must be smoking something good, cause in reality I dont think house prices are climbing at that rate. Flat is a better way to describe house price growth.
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I will agree that house prices have levelled off now. If they were increasing marginally before 1st June 2007, that has ended and we have entered a Bearish Stage in the House Market where the Buyers will have the upper hand.
This of course will depend on location.
 
Gothan said:
I basically blame useless estate agents. I would not cross the street to urinate on them if they were on fire!!

The house next door to us, small little two bedroom, one bathroom. Sold for R600k after one month. My house, 3 bedrooms, 2 full bathrooms, and twin garage, plus a huge 2 bedroom flat, still struggling to sell it at R700k. And why, freakin seeff has tied me in for 3 months on a possible sell, which has gone south after the first two months, and now I am stuck till the end of june (TG its this friday), and basically then start from scratch all over again
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Dude you could have been out of this at any time during the mandate if you were unhappy. All you do is send a letter to the head office of the company (or the agency principle) stating that you are
a) unhappy with their service,
b)the reasons for your unhappiness and
c) that you are cancelling the mandate with immediate effect.

The mandate is basically a contract of service and no agency is going to try force an unhappy seller to stick with them for the duration of the mandate. And if they try get shirty with you, get the Estate Agency Affairs Board involved.
 
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