Issue 9/ September 2007

At The Bond Man, we’re basking in this relatively quiet time, after the frenzied activity we saw between January and June. It’s given us a chance to update our systems and prepare for the summer onslaught, which we know will be upon us within the next few months. Indeed, there is still plenty to be upbeat about! For one thing, Spring is here and we find ourselves in the early stages of a buyer’s market.

An unexpected consequence of the National Credit Act has been that certain clients, mainly single professionals, now qualify for more in terms of mortgage finance than they would have prior to the NCA. Let me explain: For decades, the banks had to satisfy themselves that your monthly bond repayment would not exceed one third of your income. This rule was applied rigidly across the board, on the old-fashioned premise that Mr Average had two and a half kids, a stay-at-home wife and the attendant financial commitments that this cosy family unit involved. The assumption was that nobody could safely devote more than one third of their income to bond repayments and this prejudiced those of us who didn’t fit snugly into the neat little boxes devised by the banks’ actuaries. The reality, of course, is that many people can comfortably afford to devote well over a third of their income to bond repayments and this reality is acknowledged by the NCA. Although certain banks are still stuck in the one third repayment-to-income time warp, others require only that we show them that our clients have sufficient surplus income, after normal monthly expenses, to meet their bond commitments.

WELCOME The Bond Man welcomes Boris Greitschus into the business for a 9-week internship. Boris is a German student from the University of Hamburg, where he is majoring in Banking and Economics. He brings a fresh perspective to the business and I am grateful to be benefiting from his bright, analytical mind.

INTRODUCING CONNIE JOHNS PROPERTIES