Black property buyers on the rise

INLSA

Stock picture by Matthews Baloyi

Transformation in the SA real estate market has come a long way, with almost half of all home loan applications now being made by black buyers, compared with only about 12 percent a decade ago.

This is evident from the latest statistics from SA’s biggest mortgage originator, BetterBond. They represent 25 percent of all residential mortgage bonds being registered at the Deeds Office and include applications and bond grants from all the major lending banks in SA.

These figures show that black home buyers accounted for between 45 percent and 48 percent of all bond applications in the past three months, compared with 43 percent in the same months of last year. Also, black buyers, most of whom are also first-time buyers, now account for between 37 percent and 39 percent of home loan approvals monthly.

“It is very encouraging to see such an increase in the number of black buyers coming into the market and achieving bond approval,” said BetterBond chief executive Rudi Botha.

“It suggests a growing appreciation of the wealth-creation potential of home ownership.

“It is also a clear indication of thatmore tenants are seriously considering that it may now be cheaper to buy than to rent .

“This trend is being fuelled by the low interest rates and by improving access to bond finance, especially for first-time buyers.”

BetterBond’s figures also showed that the overall number of home loan applications made in June was 5 percent up on the same month last year. This followed a 24 percent year-on-year increase in May. -Saturday Star