Redlining of sectional title units without parking space illogical

The recently issued statement by two of South Africa’s major banks that henceforth they will no longer finance sectional title units if they do not have on site parking is illogical and based on out of date thinking, says Bill Rawson, chairman of Rawson Properties.

“This decision,” he said, “makes little sense in the current scenario where all the major cities in South Africa are working towards higher densities, greater use of public transport and reductions in commuting time. Fewer cars and fewer parking areas in the CBD and in the suburbs are what we all want and need.”

The decision also, said Rawson, ignores the fact that many responsible young people today will work to buy a home before they buy a car – and this trend should be encouraged. The decision also ignores the fact that many sectional title schemes manage successfully with street and public open space parking.

“Obviously protected onsite parking is a bonus – but if a buyer is willing to do without it, why make it difficult for him?”

The effect of this decision, said Rawson, will be to downgrade the value of all sectional title schemes which do not have parking bays – and the irony of the situation is that the banks themselves are often “investors” in these as they have financed the bondholders.

“Large numbers of units will be affected by this decision,” said Rawson, “and we, therefore appeal to the banks to reconsider their stance here.

“If this is not done, the two banks which are prepared to issue bonds for sectional title units without parking will be in a strong position to go ahead without sufficient competition – and this, too, should be avoided.”

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