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How is your homeloan?

The recession is affecting homeloans but there are still things you can do about your bond

7 October 2009 · Staff Writer

The housing market has also been feeling the effects of the recession. House prices have been dropping there have been repossessions; people are selling their houses and downgrading to meet their repayments. Property over time is a great investment but the recession has taken a chunk of value, and even if you are feeling the pressure now and feel desperate to sell the market is not set to maximise your sale price. So when will it look up again?

 

  • ABSA says low point was April
  • Recession may still affect prices
  • ABSA figures show 3.4% increase

 

ABSA runs a house price index and they released their latest figures recently. Their research shows that there has been an increase in house prices since the low in April, but with large static assets like houses the effects of an economic downturn will take time to manifest themselves. There may still be pressure on homeloans still to come. A homeloan specialist can try to get a better rate for you so that you can take a bit of pressure off of your repayment commitments.

The economic recession can't be predicted, what can be done is to track it as it happens and then take best guesses at when it will come right again. The economy is an incredibly complex system and interdependent on its components. House prices will rise again but in the meantime contact a homeloan specialist and check if you could be saving on your bond as you won't get top price from selling your house now.

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