- Warning on affordability issues for
Network's Colin Fibiger has expressed his concern over buyer
affordability issues that might influence their bond access over the
next few months.
The ongoing socio-political unrest,
particularly centered around the mining industry has resulted in
greatly reduced exports from South Africa and this in turn has brought
about our highest trade deficit numbers in many years.
"The obvious route government will follow in solving this issue to to work in favour of a lower rand," he said
in a twofold effect on the spending power of South Africans. Firstly,
any imported goods will end up costing them more than they currently
pay, resulting in less bang for their buck.
"The critical issues
however," he said, "is that with oil prices at an already high level, a
weaker rand will mean rapid price increases at the pumps".
Our economy and certainly not the man in the street can not afford any further fuel burdens added to cost factors.
the banks looking increasingly at affordability based on existing
spending patters, the further expenses erode away at dispensible income
the less chance buyers have of being granted a bond, particularly in
the 95% plus bracket.
He encouraged buyers who were currently in
the market to not delay their decision making but to rather capitalise
on what is still a buyer market by securing their property
investment sooner rather than later.
the right agent alongside them and proper advice, a buyer should feel
confident about taking that step rather than wait and lose financial
muscle through economic changes
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