How to make sure that 2016 is the year you get ahead.
The holidays are over and many South Africans are waking up to the sober reality which January always seems to bring. It’s the time of year when the costs of the Christmas festivities are trickling through, annual policy increases are beginning to kick in and back to school expenses are being brought to bear. Yes, it’s an expensive time for many and if the experts are to be believed, things aren’t going to get easier any time soon.
Several elements are casting a pall over 2016’s prospects. These include, amongst others, the severe drought which is pushing up the price of food significantly, rising interest rates and inflation, a lack of jobs, a weak Rand, the possibility of an increase in VAT, the fuel levy, taxes, municipal rates and utilities tariffs and a lack of confidence in the economy as a whole brought about largely by President Zuma’s shock firing of finance minister Nhlanhla Nene towards the end of 2015.
On balance, it would appear that there will be very little room for maneuvering in 2016. For those who over-spent during the festive season, there is even less room to do so as they are now on the back foot straight off the bat. Broadly, what this all means for the residential property market is that demand and house price growth could taper off, possibly to below 5% says FNB’s Household and Property Sector Strategist John Loos who adds that buyers will probably also seek out more affordable, “no-frills” properties going forward.
Bleak though the outlook may appear, January is also a time of renewal and implementing New Year’s resolutions. In keeping with this tradition and with the current economic climate in mind, it would be wise to make a plan to kick bad financial habits. Additionally, if you are planning on becoming a home owner in 2016, now is the time to start putting money towards a deposit and other related property costs.
The following are just a few tips to consider on your road to becoming more financially fit in 2016:
It’s going to be a tough year but by being objective and sticking to your resolution to become more financially fit, it is possible to ride out the storm and make 2016 the year you get ahead.
8th Jan 2016