Why buy-to-let housing is dying
South Africa - Business Day
Residential landlords may have to accept lower rentals on lease renewals as more flats and townhouses stand empty
Buying a rental flat or two may have been the go-to investment for many South Africans with a little cash to spare 12 to 15 years ago.
Back then, you typically only needed a 10% deposit to buy a property; the bank would fund the balance.
Rental yields (annual rental income as a percentage of market value) were fairly attractive, at 7%-10%, and most landlords were assured of a standard annual rental increase of 10%. Vacancies were low, so it was easy to find a new tenant if yours left. It all meant that your investment often started paying for itself in three to five years.
Credit and mortgage advances
South Africa - Absa
Marginal uptick in household credit and mortgage balances growth
Growth in the value of outstanding credit balances in the South African household sector (R1 658,2 billion) was marginally higher at 6% year-on-year (y/y) at the end of March 2019 compared with 5,9% y/y at end-February this year.
Household secured credit balances (R1 254,2 billion and 75,6% of total household credit balances), which includes mortgage, leasing and instalment sales balances, showed growth of 4,9% y/y up to end-March. Mortgage balances growth was slightly higher at end-March (see below), with growth in instalment sales balances (R283,9 billion and 22,6% of total household secured credit balances) at 7,5% y/y at end-March.
Growth in household unsecured credit balances (R404 billion and 24,4% of total household credit balances) came to 9,5% y/y at end-March. General loans and advances growth was 10,5% y/y at the end of March, with credit card balances rising by 9,5% y/y and overdraft balances increasing by 6,5% y/y.
Credit and mortgage advances
The Law Society’s Conveyancing Quality Scheme is changing
UK - Todays Conveyancer
With changes to the Law Society’s Conveyancing Quality Scheme (CQS) coming into effect from 1 May 2019, Joanna King, Legal and Compliance Analyst from Ochresoft – the legal workflow software specialist for conveyancing and private client lawyers – provides an insight into what the changes mean to legal services providers across the country:
The Law Society’s Conveyancing Quality Scheme (CQS) first launched in January 2011 to offer regulators, lenders, insurers and home movers a recognisable standard of excellence in the provision of residential conveyancing services.
Unquestionably, accredited practices equally benefit from the established benchmark. Mandatory training of conveyancers, procedures for the ongoing monitoring and enforcement of standards, and above all the mandatory use of the Law Society’s Conveyancing Protocol continue to encourage improvements in conveyancing best practice, client service and practice management.