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Banks Refuse Bonds For Homes With illegal Alterations
Property Junction - South Africa
Home sellers in East London should urgently make sure that their properties comply with municipal town-planning regulations and by-laws, or they may find that potential buyers cannot get bonds to purchase them...

That’s the word from Colin Kuhlmann, owner of one of the Chas Everitt International franchises in the city, who notes: "For several years, the local authority has been keen to avoid the expense of extending municipal services to new developments at the margins of the city, and has encouraged the densification of existing suburbs instead. "Indeed, homeowners were encouraged to build a 'second dwelling' such as a cottage or a granny flat on the same stand in terms of a by-law passed subject to town planning permission.

This second dwelling can even be sectional titled and sold off with lower restrictions for stand size and subdivision. "Meanwhile there has seemingly not been much concern about alterations, which has led to the widespread belief that owners can make whatever changes they like within the existing structure of their homes."
Property Junction

FNB Property Barometer - Estate agent survey by segment
FNB - South Africa
CONCLUSION
The FNB Estate Agent Survey suggests that the metro market segment where house prices average near to R1m showed the strongest “fundamentals” of the 4 “suburban” income segments during the 2 winter quarters. This “Middle Income” segment was the only segment to show a strengthening in its agent demand rating for the 2 quarters to Q3 2011.

As yet, however, we have not seen the Middle Income segment’s year-on-year price growth outperforming any of the others as of late, according to the FNB Major Metro Value Band House Price Indices, although this may still come with something of a lag. Rather, we see Affordable Segment house price growth still significantly higher than the rest, a segment which includes much of SA’s former township regions and where supply has typically been more constrained.
FNB Property Barometer_FNB Home Buying Estate Agent Survey by segment _ Q3 2011

Standard Bank financing almost half new home loans
Moneyweb - South Africa
And is set to exceed that figure for 2011.
Johannesburg, Oct 26 (I-Net Bridge) - Standard Bank (SBK) continues to support the local housing market by financing almost half of all new home loans originated by banks in the past year which it says has helped provide much needed stability and liquidity to the local residential property market.

Funeka Ntombela, head of Home Loans at Standard Bank, says Standard Bank continues to process significant numbers of new applications, an indication that a level of consumer appetite for credit remains. In 2010 Standard Bank saw an increase of 71% in the number of mortgage applications it processed.

Standard Bank's financial commitment in granting almost half of new home loans in the past year amounted to R31bn in 2010 and is set to exceed that figure for 2011. "What the market needs right now is further liquidity to support the current house price levels. Low levels of lending by financial institutions could have the unintended consequences of depressing house prices further," says Ntombela.
Moneyweb

FNB Property Barometer - Holiday towns vs Metros
FNB - South Africa
In the Second Quarter FNB Estate Agent Survey, estate agents pointed towards some decline in holiday property demand relative to overall residential demand, although month-to-month changes can admittedly be a little

volatile. The currently mediocre level of holiday property demand is unsurprising, and remains insufficient to lift the FNB Holiday Town House Price Index out of price deflation.
 
We have long been of the view that the holiday-driven property regions of the country are more cyclical than the more primary residential-driven major metro regions, reaching higher peaks in the booms, and lower troughs in the tough economic times such as the present. And 3rd quarter FNB Estate Agent Survey data along with house price data continue to suggest that holiday property buying remains on the backburner, and that holiday-driven property regions are suffering more as a result.
 
FNB Property Barometer -Township house prices
FNB - South Africa
CONCLUSION
We continue to see the former Black Township regions within the major metro areas outperforming the higher priced segments. However, these markets, too, appear to be experiencing slowing price growth as a result of interest rates flattening out in 2010 (following significant cutting) as well as some slowing in economic growth.
 
The superior performance in these township housing segments should come as little surprise, given more rapid Black Population Group income growth off a lower base than the other population groups, along with the current need for affordability in a financially pressured household sector.
 
In the longer term, the “townships” still need to complete their transition from dormitory towns to more mixed use regions with economies of their own. Whilst this process started a few years ago, most noticeable with infrastructure upgrades and retail centre additions, it still has a long way to run once better economic times return. This transition to “mixed use” is expected to greatly improve townships’ attractiveness as places of residence, and we thus believe that the long term prospects are for certain of these township regions to outperform the traditionally “more illustrious” suburban regions in terms of house price growth, off a far lower base, for some years.

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