PROPERTY NEWS - The word recession is enough to spark concern amongst average South Africans, and you are right to be concerned about the current economic situation.
However, this most recent concern is among a list of issues that have already plagued 2018.
The strain on your budget currently is not simply from the technical recession, there are so many factors that have ensured a tight end to 2018.
Fuel prices are reaching astronomical levels, while the VAT increase ensured that almost everything started costing more – even your debt repayments on a monthly basis!
The technical recession was announced due to the fact that the South African economy went through two consecutive quarters of negative growth. This happened in the first and second quarter of 2018, where the economy contracted by 2.6% and 0.7%. The Treasury had actually been forecasting growth of 1.5% in 2018, but this seems a long way off at present, with the economy currently shrinking.
Yes, buying property may be more difficult for same, especially first time buyers, as the weak rand is making it tough to gain the required finance. There is also an increased risk of negative home equity, but this is not common in South Africa.
Essentially, your personal financial situation will dictate how you should act in the current climate, and taking on large debts when you are already on a tight budget would certainly not be a smart move.