Property prices and property values are continuing to increase. That's according to the FNB House Price Index for February 2010. In his report, John Loos of FNB Home Loans, highlights that the value your home has grown by 5.8% from Feb 2009 to Feb 2008. This growth rate is much better than January's figures of 3.6% year-on-year growth. But they're still lower than inflation, which is currently above 6%.
Which banks are offering are currently offering full 100% bonds? The four major mortgage providers in South Africa are regularly changing their lending criteria.
Property News: FNB House Price Index
Seasonal stimulators and the recent interest rate cuts have contributed to a mild recovery in property prices. That’s according to the most recent FNB House Price Index.
FNB developed the House Price Index in July 2000 to estimate the average price of residential properties bought and sold. It is an [...]
The quick return of 100% mortgages has surprised many property finance experts. Although the return has been quick, it has also been very cautious. Banks such as ABSA, FNB and Nedbank are all offering no deposit homeloans again. The only difference is the terms and conditions regarding these bonds.
The latest FNB House Price Index shows that although property prices are still declining (by about 2% each month) the rate of decline is starting to slow down, and we could begin to see positive growth towards the start of 2010.
FNB made two important announcements today. The first and most positive is that home loan deposit requirements have been lowered from 10% to only 5%. These 95% bonds are available to properties under R1.5million, and are based on both the risk profile of the applicants and the property.
The latest FNB House Price Index report, released at the start of June, shows that property prices continued to drop in May 09. This graph illustrates the rapid growth and drop of property prices.
