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31 May 2018

Credit and mortgage advances - April
South Africa - Absa
Slight uptick in household credit and mortgage balances growth

Growth in the value of outstanding credit balances in the South African household sector (R1 566,8 billion) was marginally higher at 4,1% year-on-year (y/y) up to the end of April 2018 from 3,9% y/y at end-March. Secured credit balances growth remained relatively stable, whereas growth in unsecured credit balances accelerated somewhat further up to end-April.

Household secured credit balances (mortgage and instalment sales balances) increased by 3,8% y/y to R1 196,2 billion (76,3% of total household credit balances) in the first four months of the year. Mortgage balances growth was much in line with that of the past few months (see below), with growth in instalment sales balances at 5,7% y/y at end-April.

Growth in the value of household unsecured credit balances (R370,6 billion and 23,7% of total household credit balances) accelerated further to 5,1% y/y up to end-April from a recent low of 3,1% y/y at the end of December last year. General loans and advances balances (mainly comprising personal loans and micro finance and with a share of 58,6% in unsecured balances), increased by 5,3% y/y to R217,1 billion up to the end of April, with growth in this component of unsecured credit balances on a rising trend since bottoming at 2,7% y/y a few months ago in December last year.
Credit and mortgage advances

Sectional title complexes learn to live with Airbnb
South Africa - Trafalgar
Airbnb has gained so much ground in SA and participating property owners are making so much money from the concept that many sectional title (ST) complexes and estates have given up on trying to prevent owners from letting their homes and apartments on this platform, and are focusing instead on holding those owners accountable for any security, maintenance and conduct issues that may arise.

So says Andrew Schaefer, MD of national property management company Trafalgar, who notes: "The latest figures from Airbnb indicate that there are more than 43 000 'hosts' in SA who let space in their homes for an average of 19 nights a year and make about R25 000 annually by doing so. But there are many who have found that they can make that amount and more every month, by letting Airbnb apartments in high-demand holiday destinations and commercial centres.

"It is thus not surprising that there are now many ST complexes in Johannesburg, Cape Town and Durban where there is a near-constant daily or weekly turnover of Airbnb visitors - who are effectively short-term tenants - in apartments and townhouses that are not ever occupied by their owners but have been specifically acquired and equipped as Airbnb units.
Sectional title complexes learn

Laws supposed to take the risk out of rentals
South Africa - IolProperty
Property owners providing rented accommodation in the formal housing market are losing as much as R870 million a month in non-payment of rent, with many failing to implement or comply with the country's "complex raft of laws".

It is this inability to comply with these laws that Deon Botha, chief executive of rental collection company RentMaster, believes is behind the problem.

This "seemingly bewildering array of legislation", the prospect of non-payment, and the perceived difficulty in evicting errant tenants, is also why he believes many property developers build shopping malls and office and industrial parks rather than invest in residential development.

However, the real problem, Botha says, is not so much the law, which is designed to protect and balance the rights of landlord and tenant, but the failure of both parties to understand and comply with legislation and their contractual obligations.
IolProperty

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