Has Airbnb affected the rental market?
South Africa - ReMax
Most were sceptical of the concept when Airbnb first launched in the US in 2008. But, after the company announced that it had generated R2.4 billion in economic activity in South Africa in 2016, sentiment quickly swayed in Airbnb’s favour, transforming it into a widely used platform for those looking to make some extra cash.
With the large crowd of users it has drawn, the question on everybody’s lips is what effect this might have had on the real estate industry. Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa says that while the novelty of the app drew a few rental owners over to the Airbnb model over the traditional long-term renting model, many have since decided to return to long-term renting.
What property owners need to know about electricity and insurance
South Africa - MUA
Homeowners are at risk of having their insurance claims rejected if it is found that they are not in possession of a valid Electrical Certificate of Compliance (ECOC) for their property.
This is according to Marike van Niekerk, Legal and Compliance Manager at MUA Insurance Acceptances, who says that insurers expect their policyholders to prove that they have taken reasonable measures to manage the risks associated with their insured assets.
"Legislation requires a homeowner to be in possession of an ECOC, as proof that that the home's electrical installation is safe. Insurers expect the same."
She says that in the event of an electrical fire in one's home, insurers may request proof that the home’s electrical connections had been inspected and certified by a qualified electrician.
One-click conveyancing – reality or dream?
UK - Mortgage Finance Gazette
Stephen Ward, director of strategy at the Council for Licensed Conveyancers (CLC), discusses changes that are going on in the conveyancing industry
One-click conveyancing, digital workflows and online property purchase are all buzz phrases of the property world at the moment. As the government urges all of us in the industry to reform the homebuying process, and modernise an antiquated process, what is the likelihood of an Amazon style ‘one-click’ purchase becoming a reality for the average home buyer?
In April, the first digital mortgage deed was signed for a house in Rotherhithe, London and registered at the Land Registry by a CLC-regulated firm of specialist conveyancers. This was the first in a series of steps HM Land Registry plans to take in its drive to transform the conveyancing market into a more efficient, digital service using technology and a huge amount of digital data to streamline transactions. However, the process is far from widespread and won’t be for some time. But what else would it take to start pulling other aspects of the property buying process online?
Mortgage Finance Gazette
Credit and mortgage advances
South Africa - Absa
Stable household credit and mortgage balances growth up to May
Growth in the value of outstanding credit balances in the South African household sector (R1 574,0 billion) was relatively stable at 4,2% year-on-year (y/y) up to the end of May 2018 compared with 4,1% y/y at end-April as a result of little change in both secured and unsecured credit balances growth.
Household secured credit balances growth, which includes mortgage, leasing and instalment sales balances, was only marginally higher at 3,9% y/y to reach a total value of R1 202,5 billion (76,4% of total household credit balances) in the first five months of the year from growth of 3,8% y/y up to end-April. Mortgage balances growth was unchanged (see below), with growth in instalment sales balances (R265,3 billion and 22,1% of total household secured credit balances) that increased to 6,2% y/y up to end-May from at 5,7% y/y at end-April.
Credit and mortgage advances