In this day and age of rapid urbanisation no city is immune tourban decay

Rental income in SA has increased over the last 12 months by 6.6%, just slightly more than inflation.

No one could claim that the South African property market has done well in 2011. Sellers are finding that their estimated prices need to be lowered; buyers are eager but struggle to buy with banks hesitant to approve home loans

The third quarter has shown mild improvement on the previous quarter in terms of the growth in building completions.

The big banks may well have backed out of seemingly high-risk inner-city property markets but alternative lenders, private equity funds and institutions are starting to pick up the slack

US-backed private equity fund International Housing Solutions, which entered SA’s affordable housing market in 2008, recently breached the R1bn lending mark.

There is now more statistical and research information in respect of lower income earners available, enabling the banks to better assess their risk. This represent significant opportunity in quality low-cost housing for the private sector and the partly-subsidised Social Housing category

International Housing Solution has so far provided funding to 25 projects and about 25 000 units across all the major urban centres in South Africa

RBA Holdings - Traversing the rocky path

Are SA banks pricing in too much risk when lending to lower-income earners? It appears so