PROPERTY NEWS

2012 Nov 10 - Warning on affordability issues for buyers                                                                                   Port Elizabeth Property First Article
Property 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

This results 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.

With 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.

With 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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