Comments on: Are the banks to blame for the property crisis? http://www.propertytribe.co.za/index.php/are-the-banks-to-blame-for-the-property-crisis/215/ The Property Tribe is A South African Blog for anything property related, where the ordinary person has the opportunity to blog their opinion on Property. Tue, 01 Nov 2011 10:18:41 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Winston http://www.propertytribe.co.za/index.php/are-the-banks-to-blame-for-the-property-crisis/215/#comment-173 Winston Wed, 14 Apr 2010 19:54:50 +0000 http://www.propertytribe.co.za/?p=215#comment-173 Its hard out there. At the rate the bond applications are being declined I think the banks should just make it clear to everyone in this country that they are no more doing home loans then people will have to find an alternative. Think about this, higher deposits, higher salaries the bank demands now these and other factors make me wonder if my children will have properties of their own in future. Its hard out there. At the rate the bond applications are being declined I think the banks should just make it clear to everyone in this country that they are no more doing home loans then people will have to find an alternative. Think about this, higher deposits, higher salaries the bank demands now these and other factors make me wonder if my children will have properties of their own in future.

]]> By: Paul http://www.propertytribe.co.za/index.php/are-the-banks-to-blame-for-the-property-crisis/215/#comment-145 Paul Tue, 16 Mar 2010 12:37:19 +0000 http://www.propertytribe.co.za/?p=215#comment-145 Hmmm seems like there is an element of truth from both angles. Certainly to the layman banks' sudden reversal in lending appetite seemed more like a knee-jerk reaction than carefully considered (80% drop in bond grants as reported by MO's), as taking new buyers with good cash flow out the market could result in lower prices on distressed sales and bigger losses in the bank's mortgage book? Hmmm seems like there is an element of truth from both angles. Certainly to the layman banks’ sudden reversal in lending appetite seemed more like a knee-jerk reaction than carefully considered (80% drop in bond grants as reported by MO’s), as taking new buyers with good cash flow out the market could result in lower prices on distressed sales and bigger losses in the bank’s mortgage book?

]]> By: Justin Clarke http://www.propertytribe.co.za/index.php/are-the-banks-to-blame-for-the-property-crisis/215/#comment-136 Justin Clarke Thu, 11 Mar 2010 17:17:48 +0000 http://www.propertytribe.co.za/?p=215#comment-136 Welcome to the tribe Ewald. Great to have someone from FNB blogging! If the banks stop lending (like they were during the middle of 2009) then they are compounding the problem because those forced to sell cannot find a buyer unless for cash. Cash buyers are obviously looking for bargains, so houses start selling for discounted prices. Banks panic, and the bad debt ratio starts to climb? If the banks did find a way of lending normally i believe they would have saved themselves significant losses - and the industry significant pain. Welcome to the tribe Ewald. Great to have someone from FNB blogging!

If the banks stop lending (like they were during the middle of 2009) then they are compounding the problem because those forced to sell cannot find a buyer unless for cash. Cash buyers are obviously looking for bargains, so houses start selling for discounted prices. Banks panic, and the bad debt ratio starts to climb?

If the banks did find a way of lending normally i believe they would have saved themselves significant losses – and the industry significant pain.

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