NCA News

Credit Act should help sales

Initially the National Credit Act may put a damper on the residential property market, but in the long term it should help it. Despite the stringent credit profiling required under the act slowing transactions by as long as 60 days, Linda Jordaan of Herold Gie Attorneys says the act introduces new rights for consumers and improves the availability of finance at a reasonable cost from a reputable credit provider, thereby avoiding over indebtedness. Particularly property owners at the lower end of the market will have a greater measure of protection.

Francois Viruly of Viruly Consulting says he does not believe that the act will hurt the property market and should hamper the activity of property speculators, who may be tempted to try to obtain finance from every one of the major banks and overextend themselves in their efforts to invest in property.

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