Real Estate Investor Magazine South Africa December - January 2014 | Page 32

FINANCE

BY MEYER DE WAAL

Wiping The Credit
Slate Clean

It’s still going to cost you in the long run
many of the potential homebuyers who
are already facing the rising costs of food
and fuel costs,” says Goslett.

D

espite industry objections to the
removal of adverse credit information
from the credit bureau databases, in
October the Cabinet made the decision that
all blacklisting will be removed from around
1.6 million consumers’ records. The decision to
wipe the negative credit information was taken
in an attempt re-enter these consumers into the
market, which should, in turn, boost consumer
demand and spending. While this is good news
for consumers who have paid all their debts but are
still prevented from accessing further credit due to
their bad credit listing, the credit amnesty bill may
have the opposite effect in the housing market to
what was initially intended, says Adrian Goslett,
CEO of RE/MAX of Southern Africa.
According to the National Credit Regulator,
as at the end of March 2013, around 9.5 million
consumers in South Africa had an impaired
credit record. This is an increase of about 500
000 over the previous year and represents
approximately 47.5% of all credit-active
consumers.
“The credit amnesty bill will positively affect
many consumers who are currently unable to
obtain credit, or in some cases jobs, due F?F?Rf7@?F?BF?W?&R&?6??7FVB???vWfW"???FW&?2?bF?P???W6??r?&?WB?v???R?B???fR6??R?6?F?fP???7Bv?F???&R'W?W'2&?RF?66W727&VF?B?@?F?W&Vf?&RW&6?6R&?W'G??F?Rf7BF?B&??0?v????????vW"&R&?RF?v?V?6??7V?W"7&VF?@?&V?f??W"??f?&?F???g&??7&VF?B'W&VW2v?????V?F?B7&VF?Bv???&R?ffW&VBB?V6???v?W ?6?7B???&FW"f?"F?R&??2F?'6?&"F?R??v?W ?&?6??F?R??v?W"6?7B?b7&VF?B6?V?BF?7V?g??3 ????F?W"6??6W&??2F?BW?V?v??r7&VF?@???f?&?F???WG2&??2?B?V?FW'2B??v?W ?&?6??v??6??V?2F?B?B?2??V?F?BF?W?v????&Rf"?W72??6??VBF?w&?B???2?V???rF?@????R???&?f?26?V?B??6Rv??6VR?FV6??R?( ???v??rF?BF?W&R??&Rf"??&P?6??7V?W'2??F?R?&?WBv??&R??V?F?FVfV?@???F?V?"???&W??V?Bv???FVf???FV???P??V?FW'2f"??&R6??6W'fF?fRv?V??B6??W2F???77V??r7&VF?B?v???RF?R7&VF?B??W7G?&????v????V?WF?R?&?WBF?6??7V?W'2v??????fRGfW'6R&V6?&G2'WBv??6???rff?&@?F???R&W??V?G2??Bv????6??V?WF?P??&?WBF??76?&?RFV??VV?B?W'2?F??26?V?@?W76V?F????V???v?W"?V?&W"?b&BFV'G2???F?RgWGW&R?( ?6?2v?6?WGB??F?R?76?&??G??bF?R???V?V?FF????bF?P????V?6VB7&VF?B??W7G??F?R##??????V??G????6VB??g&?6?&??f?"&V6??W70??V?F??r?BF?R&V?6F???F?BV?6V7W&VB?@?6??'BFW&??V?F??rv2vWGF??r?WB?b6??G&?????&VG??B6WfW&R??7B??F?R&?W'G????GW7G'?2?V?FW'2&RF?v?FV???rF?V?"W'6W2??6??7V?W'2v??&V???FV'BF???RV?G0??VWB&R?&VG?fVV??rF?R??6??B?B?0?W?V7FVBF?v?'6V??fW"F?R?W?B6?????F?2?0????W??V?FW'2&R??Bw&?F??r7&VF?B2V6???2F?W?W6VBF???F?R7B#B???F?2?6WfW&P?7&?6?2?2W?V7FVBF???B6?WF?g&?66???0?6??7V?W'2v???&R&WfV?FVBg&??&?'&?v??p????W?F??&6?FV'B2?2&VV?F?RG&V?Bf? ?F?R7BfWr???F?2??g&??F?R?FW7B7FF?7F?72&V?V6VB'?F?P??F????7&VF?B&VwV?F?"??B6??w2F?BF?W&P?&R#?"?????7&VF?B7F?fR6??7V?W'2???7&V6R?br?Rg&??F?R&Wf??W2V'FW"?????3r?R?b6??7V?W'2&R&Vv&FVB2( ?7W'&V?N( ???v??6??V?2F?BF?W??fR???FR??V?G0??"FVfV?G2??FVBv??7BF?V?"??W2?B?"P?6??7V?W'2&R?"???F?2??'&V'2?B7F????&Vv&FVB2'B?bF?R6??7V?W'2v?F?( ?v??@??FV6V?&W"??V'?#2?B4&V?W7FFR??fW7F? ??7F?F??~( ???Bv???&R??FW&W7F??rF?6VR??rF??0?f?wW&Rv???6??&R??#B?2F?R??7B?bF?P???&R6??6W'fF?fR&?6?F??V?F??rv???F?V??7W&f6R?#?R?b6??7V?W'2&RF?&VR?"??&P????F?2??'&V'2?B2?RR?fRGfW'6R??F?6W0?v??7BF?V?"??W2?2?2R?fR?VFvV?V?G2? ?F???7G&F????&FW'2v??7BF?V?"??W2??6??7V?W'2v??F???W6??'B?FW&????2??6??'B?FW&?????2?V?6V7W&VB???f?"?W72F???6?????F?W&??B?B?bf?VRV?FW"#????&?'&?vVB6??6RF?F?R6?R??V?B?b???W?0????V?v?W'2v??V&??W72F??#RW ????F????F?R6V6??BFW&??b#2?6??'B?FW&????2??F??2??6??R6FVv?'???V?FVBF?#??2&??????F?B?2c?R?b??6??'B?FW&????0?w&?FVB???F?R6?RW&??B?#?3?Bv2???6FV@?F????R???2??F?R6?R??6??R6FVv?'??b??R6??&W2F?R???6F????bF?R?V?&W ??b???R???2f?"6??7V?W'2v??V&??W72F???#RW"???F??F?R?V?F??rf??V?R&F???0?F?R6???WFR??6?FR2f?"V?6V7W&VB?B6??'GFW&??V?F??r???F?R6V6??BV'FW"??#?f? ?F??6Rv??V&??W72F??#RW"???F??F?P??V?&W"?b???R???2&?fVB??V?FVBF?`?c2?&V??rr?2R?bF?RF?F????R???2&?fV@????F????&6?2?B??F?R6?RW&??B??# ?F?R?V?&W"6?RF?R?ff?&F&?R???R???0?&?fVB?&V??rR?"R?bF?RF?F??&?WB6?&R?`?&?f?2???F?R&?BV'FW"??#2?V?&W"?`?BS#2???R???2vW&R&?fVB?v??6?WVFW0?F?2R?b?????R???2&?fVBGW&??rF?P?6V6??BV'FW"?F?RgWGW&R?B7W'&V?B??7B?`?FVfV?G2?BF?7G&W72??F?RV?6V7W&VB?B6??'GFW&??&?WB?fR?Bv????fRF?&V7B?VvF?fP???7B??F?R7&VF?B7FGW2?Bff?&F&??G??`????V'W?W'2??&VG??B?26VV?g&??F?R7FF?7F?70?&?fR?F?B???V'W?W'2v??V&??W72F??#P?W"???F?&RF?R6??7V?W'2v??F?RW?F?R??7BV?6V7W&VB?B6??'B?FW&?FV'B?B&P???7B??V?F?FVfV?B??6RF?R?V?FW'2F?v?FV?F?V? ?W'6W2??'WB?2F?W&R6??WF?????????WBf?"F?R?W?@?VF?F????b$T???v?W&RvR????BF?R6??WF????$U4?U$4U0??v??&BGW&&V????'VFvWBf?F?W70?wwr?&V??r?6?????