Can Western European Home Ownership Products Bridge the South African Housing Gap?

Marais, Lochner

doi:10.1007/s12132-016-9279-7

Cited by 7 publications

(5 citation statements)

References 14 publications

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“…Further, this paper shares the same sentiments with Coetzee (2018) on the issue of the gap market as a model to expedite homeownership in South Africa. The view of the FIs and those of the DHSs on the application of FLISP -plus corroborates with what is discussed by Hoekstra & Marais (2016). Government has a role to play and continues extending subsidies to the LMI households (Jarbandhan, Viljoen, De Beer, and Blaauw, 2016).…”

Section: Discussionsupporting

confidence: 73%

“…The programme is targeted at first time buyers and it provides a special purpose fund called the SVn (public housing stimulation fund) as an extra loan. SVn is financed by contributions from participating municipalities' housing associations and the central government (Elsinga, Hoekstra & Dol, 2015;Hoekstra & Marais, 2016). This decreases the beneficiary's mortgage loan, making homeownership accessible (Fasakin, Olanrewaju, and Umeokeke, 2019;Deng, Yan, and Chen, 2019).…”

Section: 'Starterslening' Assists Lmi Mortgages For First Time Homebu...mentioning

confidence: 99%

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Adapting Netherlands 'Starterslening' Model to Improve the Current Finance Linked Individual Subsidy Scheme in South Africa

Simbanegavi,

Dastile

2022

Redefining the Future of Real Estate in Africa: The 21st Annual AfRES Conference

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Finance Linked Individual Subsidy Scheme Programme (FLISP) assists households who earn between R3 501 to R22 000 to get additional funds from National Housing Finance Corporation of R130 505 to the lowest income band and R30 001 to the highest income band in South Africa. This money can be used to pay for deposit or legal fees. The problem is that there has emerged a 'sandwich' class of households who earn just above the R22 000 threshold and still cannot afford entry level mortgages. Adapted from Netherlands starterslening model, the paper conceptualized a hybrid FLISP that can absorb the sandwich class termed FLISP-plus. To this class, the National Housing Finance Corporation would give 70% of the R30 001 (R21 001) while FI offer a 30% additional loan (R9 000) which can be paid after 3 years. The applicability of the proposed FLISP-plus to the South African market was evaluated by analysing responses from interview data, purposefully sampled respondents from the Department of Human Settlements (DHS) and the financial institutions. Results showed that 'education' and 'credit score' for the FLISP-plus in affordable mortgages were common themes. Further, the results showed that the proposed FLISP-plus can be adopted for the proportion of the sandwich class segment whose credit scores are low but whose incomes are high. Households can work towards improving their credit scores in order to access FLISP-plus. The study concluded that DHS can train the sandwich class to educate them on how to manage their finances well for FLISP plus to be successful in increasing homeownership. On the other hand, financial institutions can train them on different products that can support savings towards consistent mortgage payments, making

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Section: Discussionsupporting

confidence: 73%

Section: 'Starterslening' Assists Lmi Mortgages For First Time Homebu...mentioning

confidence: 99%

Adapting Netherlands 'Starterslening' Model to Improve the Current Finance Linked Individual Subsidy Scheme in South Africa

Simbanegavi,

Dastile

2022

Redefining the Future of Real Estate in Africa: The 21st Annual AfRES Conference

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“…These need to be further explored in new research. Overall, there is no denying the important role that governments can play in fostering housing investments through a good mix of the many available monetary and fiscal policy options, if such policies are tailored to the specific contexts (Holmans, 2002;Hoekstra and Marais, 2016).…”

Section: Discussionmentioning

confidence: 99%

How does transfer duty relates to housing demand in the city of Johannesburg, South Africa?

Cheruiyot

Ramantswana

2022

IJHMA

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Purpose Acknowledging that housing forms a large part of households’ and country’s long-term wealth, the South African Government has implemented various housing-related policies towards that end. Among these, the government has extended transfer duty exemption to house buyers – both individuals or natural persons and companies or other parties – to enable them buy houses of their choices since January 1950 to date. This paper aims to investigate the relationship between historical transfer duty exemption and housing demand in the City of Johannesburg (CoJ) over a longer period, where a comprehensive data set on house sales and other predictors was available. Design/methodology/approach This paper uses multi-year data on repeat house sales from 2010 to 2020 and other macro- and socio-economic variables to test the relationship between transfer duty exemption and housing demand in the CoJ, a core part of Gauteng province, South Africa. After cleaning the original data, final analysis was based on 139,121 repeat sales transactions. Data was analyzed in R. Findings Findings suggest that, when macro-, socio-economic and yearly effects are controlled, transfer duty has a damping effect on housing demand in the CoJ. The results were consistent across all the estimated models. While the motivation behind the implementation of transfer duty exemption in South Africa continues to encourage home ownership, these findings are unexpected because they do not offer support to that policy intention. These unexpected results are partly explained by the prevailing complexities of the housing market and related policies and the progressive tax regime. However, there are welfare effects that all buyers achieve across the housing market ecosystem. Originality/value This paper extends work on housing markets research in South Africa through the investigation of mortgage-based housing market in the CoJ that presents one of the densest, developed, bustling and growing housing market in the country. It also presents a fertile ground where all the effects of all the housing policies coalesce – in the statistical sense, one can control the effect of some aspects of housing policies, while appropriately testing the link between a specific policy (in this case, transfer duty exemption) and housing dynamics.

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“…There is a growing, but still small, body of work being done on property and the housing market in South Africa (Saff ; Wood ; Lemon & Clifford ). The topics covered are the township housing market, the need to extend finance to this market, the Housing Subsidy Programme’s potential to create a secondary market and, more recently, problems and opportunities in middle‐income housing (Shisaka Development Management Services ; Tomlinson ; Lemanski , ; Marais & Cloete , ; Hoekstra & Marais ; Marais et al ). Taking a more positive view, the Centre for Affordable Housing in Africa () pointed out that property markets have been developing in many former Black townships of South Africa.…”

Section: Introductionmentioning

confidence: 99%

A Tale of Two Markets: Unequal Access to Private Property in a South African City

Marais¹,

Awuzie²,

Cloete

et al. 2019

Tijd voor Econ & Soc Geog

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In line with international trends, South Africa's post-apartheid government has embarked on a housing policy that emphasises asset building. Homeownership has become a dominant policy for assisting the historically disadvantaged Black population. This paper looks at two property markets in Mangaung, a metropolitan municipality that includes Bloemfontein. We analysed property activity on 2,545 residential stands in former Black and former White areas in Mangaung since 1990. Our findings show two distinct markets. The formal property market in former Black areas shows a low number of transactions, low value and slow turnover. In the former White areas, a housing investment made between 1990 and 2016 would have yielded an annual return of 14 per cent, but in the former Black areas only 7 per cent. This poor return makes it difficult for homeowners in former Black areas to use housing for asset building.

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Can Western European Home Ownership Products Bridge the South African Housing Gap?

Cited by 7 publications

References 14 publications

Adapting Netherlands 'Starterslening' Model to Improve the Current Finance Linked Individual Subsidy Scheme in South Africa

Adapting Netherlands 'Starterslening' Model to Improve the Current Finance Linked Individual Subsidy Scheme in South Africa

How does transfer duty relates to housing demand in the city of Johannesburg, South Africa?

A Tale of Two Markets: Unequal Access to Private Property in a South African City

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