Most in SA don't qualify for home loans
Johannesburg - At least 83 percent of nearly 14 million households do not earn
enough to qualify for bank home loans, according to the latest statistics
released by the SA Institute of Race Relations (SAIRR).
"The income figures demonstrate the pressure on the
state's housing delivery programmes with 60% of all households eligible for
government-subsidised housing," said Kerwin Lebone from the institute's
research department on Thursday.
In 2009, only 12% of households earned enough to qualify for
an unassisted bank mortgage, the SAIRR said in a statement.
Only 700 000 households qualified for bank finance in the
affordable housing sector.
These figures emanate from a 2011 report by the Financial
and Fiscal Commission.
In 2009, at least 60% of households earned R3 500 or less a
month and qualified for a state housing grant.
Seven percent of households earned between R7 000 and R10
500, which did not allow them to qualify for government housing programmes and
not enough to get a bank mortgage.
It said the number of informal backyard dwellings rose by
83% between 1996 and 2010.
"People who were on the waiting list of government
housing programmes, and the majority of those that do not qualify for such
programmes, often migrated to backyard dwellings that offered cheaper
rentals," the SAIRR said.
With the huge demand for rdp housing and unemployment rates so high,instead of giving tenders to cadres, why not supply basics-ie a standard plan and supplies and allow the people to build their own houses. There are many skilled people sitting at home unemployed. They would take better care of something they had built themselves and this could be done in all races.
I think we are in a truly sad position. Even top jobs don't earn enough money anymore to qualify for home loans.
Government Ministers earns huge salaries and also gets free or subsidised houses, have you considered that in your equations? Why would they care about the rest of us?
"A man is not a man until he has a house of his own." Nelson Mandela
yip - this is why young qualified teachers leave the country as the salary doesn't cut it, but government hasn't thought that one through yet...
The banks don't even want overseas income. Expats only get 50 - 70 % loans (bank policy), so even if they can amply afford the repayment, where do they get the deposit required? Sorry to say but the banks of the world has ruined the world and if enough is not enough they are busy ruining the people that live in it too, all for their own greed. Check the bonusses these dudes earn!!! They don't need a bond, they can buy a house at least once a year, CASH!