Property market in crisis
After a four-year boom during which prices soared, the property market is in crisis, with consumers facing a desperate struggle to get finance to buy or build homes.
Almost 40 percent of would-be borrowers have had their home-loan applications rejected by the four biggest banks since the beginning of the year as the credit crunch, sparked by stringent lending laws, rising inflation and higher interest rates, bites ever harder. Rejection rates have reached record highs.
With inflation reaching 13 percent last month, consumers are under pressure - they have racked up more than R1 trillion in household debt, up from R378,5-billion in 2002. They are now being forced to cut back on spending because of higher interest rates and the rising cost of living.
Household debt has TRIPLED in 5 years! Sweet googly moogly that is treading some dangerous water. But of course never fear... the World Cup will save us!
"However, the 2010 soccer World Cup could offset the current negative view of South Africa as an investment destination and this could drive momentum in the residential property market," he said.