We were all expecting some positive news for South African homeowners at least mid-way through 2009.Apparently we will not see any improvement in house price growth until 2010.This was the prediction put forward by FNB property strategist John Loos,speaking from Johannesburg.
He made this prediction because although rate cuts have and will still improve the situation this will be completely outweighed by general negative economic growth.
Many homeowners have formulated rescue plans for themselves under the assumption that the market would start to improve far sooner than the end of 2009.While many individuals may find that the interest rate cuts to come are enough to improve their own situation many more will still face the prospect of selling into negative equity or having their home taken into possession by the lender if they can’t make their payments.
What many people haven’t realised is that it is far better to formulate an exit plan well in advance than to see the crash coming and have no parachute.If you foresee your future happiness slipping away because of the current market slump do something about it now.We all know how long anything to do with property takes,it could be months before you even get the right advice.
If you are the parent of older children, and it’s a realistic option, why not ask them to move back in with you for a while.The combined finances would surely lessen the strain on all parties.Provided you get on well with your kids.
If you suspect you may face financial problems in the future, whatever you do, don’t wait until the last minute to review your options.Start thinking out of the box and may find a great solution.
John Loos was criticized for being too optimistic in beginning of 2008. I wonder if he will be criticized again for being to pessimistic this time round?