It’s party time for first-time buy­ers

Business Day - Home Front - - HOMEFRONT -

RARE OC­CA­SION For those con­sumers keen to buy their first home, there couldn’t be a bet­ter time to take the plunge. So says Rudi Botha, CEO of Bet­terBond. He notes that the res­i­den­tial prop­erty mar­ket has reached a stage that oc­curs only very rarely, in which sev­eral ma­jor fac­tors are all aligned in favour of first-time buy­ers. This is clearly ev­i­dent in Bet­terBond’s lat­est sta­tis­tics, which rep­re­sent 25% of all res­i­den­tial mort­gage bonds be­ing reg­is­tered in the Deeds Of­fice and in­clude ap­pli­ca­tions to all the ma­jor lend­ing banks in SA.

At the mo­ment, about four out of ev­ery 10 home loans ap­proved are 100% loans and most of these are go­ing to first-time buy­ers, in­clud­ing those in the af­ford­able sec­tor. “In ad­di­tion the av­er­age per­cent­age de­posit re­quired by first-time buy­ers who don’t man­age to se­cure a 100% loan has de­clined from 11.5% of the pur­chase price to 9%.

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