Being able to afford a house is still tough
This information was released in said First National Bank (FNB) monthly House Price Index which was released last week.
"The current average price for a home is R779 546 but the growth has brought an end to affordability rent," FNB property expert John Loos said.
" Last year, house price deflation and ongoing wage inflation had the effect of making homes more affordable.
"The improving trend in affordability has probably come to an end for the time being, following both measures of affordability having dropped back [improved] to around the affordability levels last seen in the second half of 2004," Loos added.
Realtors however, believe that the recent rate cut will make it easier for people in the low to mid-price levels and could even lead banks to slightly relax their lending criteria.
While it is evident that the economy is starting to recover - it's likely that it will be a slow recovery and the sustainability is questionable - the same goes for the property market.
"From a residential property perspective the same sentiment would apply. While there continue to be signs that the market is recovering, prices are going to be slow to respond and that high levels of indebtedness are going to continue to be a factor affecting affordability," Jawitz Properties CEO Herschel Jawitz said in a statement.
As long as the gap between wages and the cost of living and homes continues to widen, though, buying and affording a home will continue to be a distant dream for most especially with debt levels being very high after the recession.
Featured Does your business have cyber insurance? Here’s why it should
Imagine your business falls victim to a data breach today. All your clients, who trusted you with their personal information, are now at risk. This is a horrible reality that many businesses have to face nowadays. But did you know that you can get insurance to protect you from this?
Should you strive for an excellent credit score?
We often hear from financial experts that we should improve our credit score because it puts us in good stead with the credit providers – and it really does. When you have a good credit score, you’ll be in a favourable position to borrow, and, you stand a good chance of paying lower interest rates.
What are the benefits of living in a “Zoom Town”?
With many careers moving online, work-from-home employees have realised they can live in smaller suburbs or towns at a lower cost and enjoy the benefits of a slower lifestyle, while keeping their jobs.
You can’t cash cheques anymore in South Africa – we find out why
In November 2020, the South African Reserve Bank (SARB) announced that cheques would be discontinued from 1 January 2021. But what guided this decision? We have a look at what the pitfalls have been of using cheques, and the consequences of removing them from the payment system.
Davinci Hotel Valentine’s High Tea Special
Price: From R355 per person
When: 14 February 2021
The Hyde Hotel Dinner Voucher Special
Where: Cape Town
Zimbali Free Nights Special
Price: From R3800
When: Until 28 February 2021