Weekend Argus (Saturday Edition)
Women the best risk for finance to buy houses
Want to empower women? Give them cheaper home loans and lower taxes
IN INDIA, single women buying their own homes benefit from cheaper home loans, lower stamp duties and bigger tax rebates than single men.
In South Africa, single women have none of these advantages, but they are making far more effort to provide financial security for themselves and their children than single men – and could really do with some help or incentive from the banks and/or government, says Richard Gray, chief executive of the Harcourts Real Estate group.
“Here it is very difficult for a single person to get approval for a home loan, let alone a lower interest rate, and there are no annual tax rebates for residential property owners, he said.
“Nevertheless, the latest statistics available from a survey by credit bureau Compuscan show that of the mortgages granted to single people last year, 54 percent of those for less than R1 million went to single women, who also accounted for 57 percent of new bonds in the R1m to R3m bracket.”
And in this, he says, South African women are in step with their counterparts in many more developed countries, where single women (including never married women, divorcees, single parents and wid- ows) are about twice as likely now to be home owners than single men.
“In the US, the National Association of Realtors says single women account for 18 percent of all home purchases, as opposed to the 10 percent by single men, and in Australia, recent census statistics show 65 percent of women own their
‘Women all over the world are proving to be better at managing their credit than most men are’
own homes, as opposed to 55 percent of men.
“In the UK, women are taking things one step further now by buying more investment properties than men, with the number of older women buying properties to help fund their retirement having risen by 43 percent in the past four years.”
What is more, says Gray, women all over the world are proving to be better at managing their credit than most men are.
In Australia, for example, 48 percent of households headed by single women have settled their mortgages, compared with 31 percent of households headed by single men.
“In South Africa, a recent survey conducted by the Credit Bureau Association showed clearly that women are less of a credit risk than men,” he said.
Although they make up the majority of credit-active consumers, they have fewer credit accounts than men (48 percent of the total) and fewer impaired or adverse records.
“And with that in mind, as well as the fact that more young women than young men are getting good school results and degrees and putting themselves on track to earn well, we think South African banks and the government would do well to take a leaf out of India’s book and encourage home buying by single women – especially those who have children or elderly parents in their care.
“This would be a really meaningful way to demonstrate their commitment to improving life for women in South Africa.” THE HEMEL-en-Aarde Estate on the outskirts of Hermanus is nearly fully developed, with just 16 vacant erven remaining out of 356.
Pam Golding Properties (PGP) reports that the secure residential estate is attracting interest from a wide range of buyers, from local families and business owners to people moving from upcountry for security reasons and European “swallows” who spend their summers in South Africa.
The development’s reputation as a well-managed estate with hi-tech security ensures perennial demand, although stock turnover tends to be low as most owners opt for longterm residence.
Hemel-en-Aarde is between Onrus and Hermanus, at the tip of the Hemel-en-Aarde valley, alongside the Fernkloof Nature Reserve. Most properties have views of the mountains, Walker Bay, or both. The 45ha estate includes a range of housing options, from small lock-up-and-go cottages to more substantial family homes and a few luxury properties on very large erven. Landscaping includes extensive open spaces, including a fynbos garden, an Afri-Zen garden, several water features and 6km of paved walking or jogging trails.
PGP’s managing director for the Boland and Overberg regions, Annien Borg, says prices range from an entry level of around R1.6 million for smaller cottages with limited views, up to R2m to R3m for larger family homes with better views.
More substantial properties with four bedrooms, high quality fittings and unfettered views can fetch R4.5m to R5m, and a handful of luxury properties can sell for over R10m. Plot sizes average around 1 000m and the few remaining vacant plots are priced from R500 000 to R1.2m, depending on position, elevation and views.
“Residents enjoy the peace of mind of living in a secure environment protected by biometric access control, an extensive yet unobtrusive CCTV camera network, infra- red perimeter beams and 24 hour armed response and guard patrols,” she says. “These extensive security features are one of the major selling points of the estate, particularly for families moving from other provinces for security reasons, and those who spend only a portion of the year in SA, and want to know their homes are secure in their absence.”
Amenities include a country club with tennis and squash courts, saunas, a steam bath, a putting green, a bar and a gym, a heated swimming pool and children’s pool. It offers highspeed internet and digital satellite connectivity and free phone service between residents.
Call Louise Momberg on 082 553 0427 and Annali Durr on 082 323 6552 or email onrus@ pamgolding.co.za.