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"Bond originators must stay" says Lanice Steward
RodneyHayter.com - South Africa
As the property fraternity is now uneasily aware, South Africa's banks are threatening to reduce the commissions paid to independent bond originators. This, says Lanice Steward, MD of Anne Porter Knight Frank, "could impact adversely on the entire real estate industry and severely reduce the consumers ability to get truly competitive bond rates."

Before independent bond originators came on the scene, Steward claims in a media release, the bond applicant looking for a competitive interest rate had to approach all four major banks - plus possibly some small organisations - and give them the details of his application.

SA property market collapsing from the bottom
Moneyweb.co.za - South Africa
Banks effectively boycott entry price level property buyers, leaving residential real estate market's foundations very shaky.

If you think what's happening in the suburbs is scary, read this account from Ivan Neethling, Startprop CEO, of the troubles on the first rung of the property ladder.

Agents in the less affluent and disadvantaged areas have become very disillusioned.
It can be very disappointing for an estate agent to work hard, achieve eight or ten sales in a month (always ensuring that the buyers do qualify in terms of the National Credit Act for their bonds) only to find that the banks have turned down over 80% of these applications.

Demand for newly erected houses nosedives
Business Day - South Africa
The residential building sector deteriorated sharply last year as the economic downturn weakened demand in the market, according to data released by Statistics SA yesterday.

In the year to December the real value - adjusted for inflation - of all building plans approved by local authorities declined 17,2% to R39,8bn from the previous year, following a continuous decreasing trend since the peak of 36,3% growth in 2005. The real value of residential building plans passed for the year fell 26,1%, or R6,6bn less than the R25,3bn recorded in 2007. Additions and alterations dropped 12%, while non-residential buildings showed a marginal increase of 0,6%.

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