PROPERTY: Blacks Now Biggest Bond Appliers Group
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Perceptions that changes in the economy were generating an emerging black middle-class have been cemented with the latest property ownership and purchasing statistics.
Data collated by national mortgage origination group Bond Choice demonstrated there had been an inversion in the percentage of home loan applications between white and black potential buyers in the past three years.
Bond Choice CEO, Richard Gray, says in 2007 white South Africans accounted for 60% of the monthly applications for home loans, while blacks were only 30%. The balance has remained fairly evenly split between Indian and coloured South Africans.
However, by January 2010 black South Africans accounted for 50% of the monthly home loan applications against the 40% reflected for white South Africans, indicating the degree to which the country was creating a burgeoning middle-class moving into property ownership.
The number of monthly applications topped 7000 during the height of the property boom before the banks tightened their credit controls and the world suffered economic recession. Gray says in recent months the company has noticed an upward trend in the number of monthly applications and approvals for bond granting as the recession eases its grip on the economy and people tentatively return to the property market.
He adds that there has been steady growth in the affordable housing market with the average home loan being R450 000, thus reflecting an easing on credit controls and the re-introduction of 100% bonds within this particular market segment.
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