The number of black home buyers entering the South African residential property market is increasing steadily as the socio-economic tables turn, with the number of black home loan applicants already exceeding white applicants. This is according to Rhys Dyer, CEO of ooba, South Africa's leading bond originator, who says that the number of applications by black buyers currently represent 45% of total home loan applications.
Residential property prices showed moderate positive growth during August, according to the latest results released by ooba - South Africa's leading bond originator.
According to Jenny Rushin, Provincial Sales Manager at ooba, leading bond originator, as the economy recovers, property prices remain reasonable and the effect of lower interest rates is felt, confidence will return to bricks and mortar investments.
Gauteng's improved transport infrastructure has already caused increased property market activity, as well as improved property prices in the residential housing market in areas such as Midrand, Centurion and Sandton.
Although 100% home loans are being approved by banks in select cases, potential property owners are advised to save for mortgage deposits, due to the numerous economic benefits for prospective home owners in the long-term.
The latest statistics by ooba, South Africa's leading bond originator, have revealed that the effective bond approval rate through ooba has increased by 7.7% in the past year to 63.4%.
With the average house price now over R800,000, increased cost of living and the average age of the first-time home buyer being 37, applying for a joint mortgage is becoming more of an attractive option for people trying to enter the property market.
ooba, South Africa's leading bond originator, said the number of bond applications in March 2011 reached a three-year high. ooba statistics revealed that the average number of bond applications in March was the highest level recorded for nearly three years (since May 2008) and is 36% higher than the average monthly application intake recorded in 2010.
Leading bond originator, ooba, has launched a new franchise brand, oobalink, that will give franchisees the opportunity to benefit from the established ooba group's branding and national footprint.
According to the Credit Bureau Monitor's 2010 4th quarter report only 53.3% (9.90 million) of the 18.51 million credit-active consumers in South Africa were classified as in good standing.
The number of single female homebuyers in South Africa has risen significantly over the last four years, on the back of an increase in single person households and as women gain better positions in the workplace.
Residential property prices are set to achieve modest growth in 2011 in line with inflation. This is likely to be at a reduced rate than the level of growth recorded last year, however with interest rates remaining at historically low levels home buyers are being urged to take advantage of the current environment to secure a favourable home loan.