The banks are not the only ones to blame for the stale property market here in South Africa. They have to protect their investments, and also need to comply with the National Credit Act.
Even though property prices are not likely to boom again this year, the current low interest rate offers existing homeowners the opportunity to pay off their bond faster, and hence make more profit once the prices pick up again in future.
I can see why estate agents are unhappy with the current situation, but they must also do their part to filter clients and only show them properties that they can realistically afford. That just messes up the deal for all parties involved when the bond is not approved in the end.
Original article: Estate agents say bank lending criteria hampers market
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