DEVELOP & INVEST
Will South Africa see
the introduction of
100-YEAR HOME LOANS ?
Would you pass on your debt to your children ?
Take Japan , for instance . Their lending agreements allow house purchasers to apply for 100-year home loans , which typically results in the debt being passed onto their children . It ’ s effectively leasing a property from a lender for life ( and those of your relatives ). The United Kingdom ( UK ), meanwhile , is considering the introduction of 50-year mortgages , inspired perhaps by the Japanese model . Could this work in South Africa ? And , more importantly , would this be a solution for the country ?
Cross-generation mortgages – the benefits
In a world where interest rates and house prices are going up every year , politicians are considering the possibility of extending mortgage terms to allow people to access home ownership more easily .
34 F I N A N C I A L F O C U S
Some governments in other parts of the world have gone to some extraordinary lengths to tackle affordability of housing in their respective countries .