Results 1 to 4 of 4

Thread: NCA wreaks property havoc

  1. #1
    Silver Member Eugene's Avatar
    Join Date
    May 2007
    Location
    Somerset West
    Posts
    297
    Thanks
    0
    Thanked 6 Times in 6 Posts

    NCA wreaks property havoc

    Black mortgage originators operating in South Africa's township property market are being hit by a double whammy.Firstly, they are still struggling to crack the white-dominated mortgage origination market and, secondly, the National Credit Act (NCA) is severely hampering their business.

    Mortgage originators are sensitive to the performance of the property market and any dip in house sales puts pressure on their revenue because they earn commissions from acting as middlemen between lenders and homebuyers.The originators have become so powerful in the property market such that they generate about 70% of home loan sales for the banks.

    The bigger the volumes they generate, the greater the profits they make.Nakedi Magodielo, the managing director of Agang Bond Originators, said the NCA had worsened their plight.He appealed to the government to intervene in the property industry to forcefully create opportunities for black originators, developers and estate agents.

    Full report: http://www.fin24.co.za/articles/defa...518-25_2180176

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,943
    Thanks
    3,053
    Thanked 2,458 Times in 2,064 Posts
    Blog Entries
    12
    This part from the same story is actually quite curious.
    Despite the NCA teething problems, black originators say the banks must help them to muscle their way into property developments that take place in the affordable housing market.

    Maluleke said black originators should be dominating the township market but are struggling to compete with big firms such as Mortgage SA, Bondchoice, Betterbond and Wizard."

    White originators are getting a bigger percentage of the emerging market than we do. We need to be given an opportunity to penetrate this market," he said.
    Why are "white" originators getting a bigger percentage of the emerging market?
    The trouble with opportunity is it normally comes dressed up as work.

  3. #3
    Suspended
    Join Date
    Nov 2007
    Location
    South Africa
    Posts
    180
    Thanks
    10
    Thanked 29 Times in 21 Posts
    Dave
    I think it is just because we have been in business longer,
    I noticed the trend in " township" property 2 years ago and ow 70% of my business originates there.
    I have teamed up with the only BE empowered BO in the country and it has made a big difference.

    I have noticed that every time a startup business or new industry is created they cry for government intervention in difficult situations.....what happened to entrepreneurship?

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,943
    Thanks
    3,053
    Thanked 2,458 Times in 2,064 Posts
    Blog Entries
    12
    Quote Originally Posted by QUINN View Post
    I have noticed that every time a startup business or new industry is created they cry for government intervention in difficult situations.....what happened to entrepreneurship?
    It certainly runs the risk of encouraging weak entrepreneurship if not handled correctly.
    The trouble with opportunity is it normally comes dressed up as work.

Similar Threads

  1. Property purchase and surety rights
    By duncan drennan in forum General Business Forum
    Replies: 7
    Last Post: 05-Sep-07, 11:21 AM
  2. Environmental: Concern over implications of Beach property Bill
    By Eugene in forum General Business Forum
    Replies: 2
    Last Post: 16-Aug-07, 04:16 PM
  3. Reckless lending could knock property market
    By Dave A in forum National Credit Act Forum
    Replies: 0
    Last Post: 13-Mar-07, 08:37 AM
  4. disturbing trends in US property
    By duncan drennan in forum General Business Forum
    Replies: 0
    Last Post: 02-Oct-06, 08:19 AM
  5. The issue of intellectual property on the web.
    By I Robot in forum Technology Forum
    Replies: 0
    Last Post: 21-Sep-06, 12:48 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •