Financial pressures are forcing 20% of property owners to sell their homes and downscale found FNB when it surveyed estate agents.
“Although the estimated percentage of sellers ‘selling in order to downscale due to financial pressure’ is significantly lower than the second quarter 2009 peak of 34% of total selling, the third quarter 2012 percentage of 20% of total sellers downscaling due to financial pressure remains in my books a very high one. And the percentage remains stubbornly sticky around the 20% mark over the past year or so,” said FNB’s household and property sector strategist, John Loos, in a statement.
Loos viewed this as a positive move pointing out that it showed homeowners were taking proactive steps to reduce their financial debt obligations in order to rebuild the household balance sheet prior to defaulting on debt. But he warned that many could still be ill-equipped to deal with other pressures: “The figure continues to suggest that South Africa’s household sector remains far from ready to take on the next interest rate hiking cycle when it comes.”
The survey also revealed that not everyone was under financial pressure and that 16% of sellers as at the third quarter of 2012 sold their homes in order to upgrade. “The question, though, is how financially strong are these sellers that are upgrading? Or is it in many instances the abnormally low interest rates currently at play?” asked Loos.
Twenty percent of sellers downscale due to financial pressures
Recent Articles
Featured Can you take out vehicle finance on an old vehicle?
As it turns out, creditors have several concerns regarding cars older than 10 years. Justmoney has a look at why creditors are sceptical of older vehicles and what you can do to get around this.
Should you have a living will in place?
When you hear the word will, the only thing that comes to mind is the document that states who is going to inherit you property when you’re dead. But have you thought about who’s going to decide what happens to you when you become incapacitated? A living will can help you do just this.
Know the difference between a loan and a credit facility
Choosing the correct product according to your needs is critical in making smart financial decisions. Credit options can be separated into two main categories – loans and credit facilities. But for some people, the lines can be quite blurred between the two.
Is property a good investment?
It’s good to consider whether property is a good investment. Justmoney spoke to numerous specialists to find out whether this is the case in South Africa.
Deals
DaVinci’s on Kloof Students Discount
Price: Available on request
When: Daily
Where: Cape Town
Ghandi's Backpackers and Guest Lodge 10% Discount
Price: Available on request
When: Daily
Where: Johannesburg
Fairway Hotel Happy Hour Special
Price: Available on request
When: Until 13 December 2019
Where: Johannesburg
Our suppliers and companies we review
