Banks prefer to bond wealthy properties

Banks prefer to bond wealthy properties

The proportion of bonded property showed an increase within the wealthy and affordable price segments from 2006 to 2010.
A recent study conducted by property analysts Lightstone indicates that South African banks prefer to bond high-priced property worth R1.5m or more, as buyers of these properties are considered less risky and more -likely to pay their bond repayments.

The proportion of bonded property showed a general increase within the wealthy and affordable price segments from 2006 to 2010, and this decreased proportionally for the comfortable price segment - even though the majority of properties sold in South Africa fall within this bracket.

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