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Credit and mortgage advances
Absa - South Africa
Growth in household mortgage balances slowing down further

Growth in outstanding credit balances in the South African household sector was recorded at 2,1% year-on-year (y/y) at the end of June 2016, with this low growth to some extent the result of data distortions in respect of especially certain unsecured credit balances (see explanatory note). The value of household credit balances amounted to R1 469 billion at end-June.

The value of household secured credit balances (R1 129,9 billion and 77% of total household credit balances) showed relatively stable growth since March, with growth in June registered at 3,8% y/y. This was the combined result of growth in household mortgage balances (see below) as well as instalment sales balances growth of 2,7% y/y at the end of June.

The value of household unsecured credit balances was unchanged at R337,3 billion (23% of total household credit balances) at the end of June this year compared with May, resulting in a year-on-year decline of 3,1% y/y on the back of the abovementioned data distortions. Growth in general loans and advances (mainly personal loans and micro finance) contracted by 7% y/y up to June. However, growth in the value of outstanding household overdraft balances came in at 13,1% y/y at the end of June, mainly as a result of the base effect of extremely low growth of only 0,4% y/y a year ago.
Credit and mortgage advances

Alarm bells ringing in the Centurion office space market
Rode - South Africa
The Pretoria decentralized office market continues to suffer from the aftermath of overzealous development coupled with weak demand for space to rent. This statement especially applies to Centurion, one of its largest and most popular office areas.

The accompanying graph illustrates the problem facing Centurion. It shows how, since 2009, the total stock of office space in Centurion has accelerated and headed north, far outpacing the demand for space (floor areas occupied for grades A and B combined). Demand was calculated by subtracting the square metreage of vacant space from the total square metreage of stock. The widening gap between stock and demand - as seen in the first graph - therefore represents the rise in vacant office space. This explains why - as shown in the second graph - prime office vacancy rates in Centurion jumped from about 5% in 2009 to roughly 18% in the second quarter of 2016.

The do's and don'ts of home equity
ReMax - South Africa
Is there ever a good time to use your home equity? Homeowners who have equity available in the bond accounts might be tempted to withdraw some of the money and use it for more immediate needs or wants. Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says that while it is not always a wise decision to take equity out of the bond, there are a few circumstances where is can actually benefit the homeowner.

He notes that if a homeowner does decide to use their home equity, it should be utilised in a way that will put the homeowner in a better financial position than they were in previously. “The crux of the matter is that the homeowner needs to be responsible with their borrowing and determine whether taking the equity will advance them or impede them financially,” advises Goslett.

How and when to legally evict tenants
IolProperty - South Africa
Renting out a residential property is a great source of income, if managed correctly. But, even with the most stringent checks and approval processes it?s still possible to end up with a bad tenant - a tenant that then needs to be evicted.

"The eviction process is time consuming and needs to be done according to the letter of the law, if the landlord doesn't want to face some sort of legal action further down the line", advises Bruce Swain of the Leapfrog Property Group."

Reasons to Evict
Essentially there are three instances in which an eviction becomes necessary (and legal); when a tenant damages the property, defaults on rent or, uses the property for anything other than what was agreed to in the rental contract", explains Bruce Swain.

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