Friday, 9 May 2008

Sub-Prime Mortgage Lending - South Africa's Next Goldmine

Well ladies and gents, don't know about you but I think today is the first time: I've actually managed to breathe since these public holiday's we've had.

For the first time in my life I realised that public holidays aren't actually that cool. Yes I'm getting old, in fact it's my 30th on the 12th June so I'm getting cockier by the minute too. WIZARDMAN is turning 30 years OLD!

I read a Standard Bank report the other day and after trying to cypher through the financial gibberish that's so often put in these reports something hit me like a steam train.

The current trend that South Africa's following is the trend of the US property market between 2002 and 2006. The only difference being that instead of us implementing a credit act and stricter credit lending practices after our sub-prime lending crash we've managed to implement the credit act FIRST!

Was the credit act implementation possible a preemptive measure put in place predicting a sub-prime mortgage boom in South Africa? Is it the end of the banks being the major supplier of home loan finance?

Another thing that I was wondering, was why did OOBA re brand? Did they re brand in an attempt to break away from the Mortgage SA (bond origination) type company and become the new SubPrime Mortgage Lending company?? Has OOBA taken the first step?

Let me know what your thoughts are on this topic? It's something that's really fascinating and possibly the next big BOOM in the S.A. property market.

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