End of payment holidays to make SA's debt crunch real
South Africa will move to Alert Level 1 at midnight on Sunday, 20 September - and the remainder of the restrictions imposed during the past six-month lockdown under a state of disaster will be eased.
While the residential property market has seen signs of an earlier than expected rebound, beyond just the pent-up demand of lockdown and stoked largely by the favourable and 50-year-low interest rate, there have been marked knock-on effects for the rental, as well as the retail and office sectors.
Analysts warn that many of the personal and business relief measures which were introduced in April are now coming to an end, with unemployment expected to rise even further as SA’s economic forecast dips to unprecedented lows.
"This will cause home buying activity to stabilise again shortly and, we believe, to remain only ‘slow and steady’ for at least the next 12 to 18 months," says Berry Everitt, CEO of the Chas Everitt International property group.
OPINION | Shaking the foundations to change the structure of our cities
It’s easy to fall into the doom-and-gloom trap of how the current pandemic will forever change the face of cities and how the very foundations of urban planning and architecture will have to adapt to a new human reality. But rather than adopting a reactive stance when it comes to envisaging how cities might change, looking beyond Covid-19, why not focus on how cities should structurally change?
Inequalities have become starkly apparent as a result of Covid-19, providing us with a new lens through which we view the world. Armed with this deeper realisation, we now have an opportunity – if we choose to take it - to focus on our humanity. Can we, collectively, seize a moment when commercial and residential property values and declining rental yields have been accelerated to help drive structural change?
We are being gifted the chance to change our cities into more human spaces and more equitable places. Can we use the assets we have in transforming society, through the collaborative provision of inner city clinics, schools, libraries and other community centres, to foster hubs capable of spurring on the generation of inner city housing?
6 Reasons why a deposit is important when buying property
South African interest rates are at their lowest in over 50 years, the banks are competing aggressively for home loan business, and the prime lending rate is now 7% - making it the great time to buy property.
Buying a home is one of the best long-term investments most people will ever make. However, taking the first step to make a purchase can sometimes be daunting and even intimidating, more so now with the current unprecedented times we live in. FNB Home Finance Growth Head Mfundo Mabaso, says as a first-time home buyer, the most important thing to consider is whether or not clients can afford to take this big step.
“While it is still possible for a bank to grant clients a 100% home loan which does not require a deposit, we strongly encourage our first-time home buyers to consider putting down a minimum deposit of at least 10% of the value of the property to ensure that their home loan repayments are reduced and more manageable.”
De Lille to discuss 279 development projects set to underpin construction industry's transformation
The recent inaugural symposium of the Sustainable Infrastructure Development Symposium South Africa (SIDSSA), held on 23 June and in a vastly changed Covid-19 world, saw President Cyril Ramaphosa cement his call on financiers and government stakeholders to come up with extraordinary measures to reinvigorate a vastly underperforming South African economy.
As a result, 276 projects from across the private and public sectors were identified to fast track a robust infrastructure pipeline expected to set South Africa back on track.
"With all these projects now falling under the National Department of Public Works & Infrastructure (NDPWI), Minister Patricia de Lille faces the responsibility of ensuring this pipeline is built," says Deon van Zyl, Western Cape Property Development Forum’s (WCPDF’s) Chairperson.