Five Tips for Recession-Proofing Your Home

Have you thought about how prepared you are if the economy takes a downward swing? With these tips, you can help recession-proof your home and ensure changing economic fortunes don’t cause problems.

The recession has been a major talking point around the world in recent years. Since the economic downturn of 2008, many people have looked at the fallout of recession in more detail. The second part of the global financial crisis (GFC) had little effect on the Australian economy. Many think that part three is on its way and some experts believe it will have consequences for the whole world. Still, Australia is in a strong position right now. For many, it’s potentially the right time to get a home loan. But you have to remember that no country is immune to the effects of the GFC. This means you need to pay close attention to your own finances and prepare yourself for what might happen. That’s where these tips come in. By following these five tips, you ensure you’re as prepared as possible for GFC part three.

Tip #1 – Maintain Job Security

Job security offers many benefits. You reduce the amount of stress in your life because you feel comfortable in your work. A stable job also makes lenders more likely to consider you for a home loan. But you need to stay up to date with the latest advances in your industry to maintain your job security. Upskilling and educating yourself on the latest technologies make you an asset to your employer. This means you’re less likely to lose your job if a GFC happens. Furthermore, pay attention to your contract. You may find clauses that could cause issues if you aren’t careful.

Tip #2 – Get Rid of Your Debt

Those in debt experience a lot of problems during a GFC. Collectors come calling and interest rates spike as lenders try to protect themselves. Take a serious look at your debt situation and be honest with yourself. Are you needlessly building more debt to fund a lifestyle you can’t afford long term or in the event of increased interest rates? Now is the time to try to reduce those debts. Prioritise your payments, focusing on the largest debts with the biggest interest rates first. Budget according to your income, rather than trying to pay for a lifestyle your income can’t sustain.

Tip #3 – Keep Saving

Your savings offer you a safety net in the case of a GFC. But many people still don’t put any money away. It’s a good idea to put 10% of your pay into a savings account each month. Ideally, this account will have a high interest rate, so your money can earn more. With some accounts, you could earn up to 6.5% interest on your savings. As a general rule, look for a savings account that offers at least 4% interest.

Tip #4 – Manage Your Relationship

You may feel you’re secure because you’re managing your money alongside your partner. But you should remember that if a GFC affects one of you, it affects both of you. Sit down with your partner and draft a list of financial goals you both share. Also, be honest about your current expenditure. You need to confront the issue if one of you spends beyond your joint means. This requires good communication, as the subject of money can cause arguments if approached poorly. Always remember that the conversation should focus on making the financial base of the relationship stronger.

Tip #5 – Create a Budget

Another simple tip, but one that many people don’t follow. Creating a budget allows you to keep track of your income and expenditure. Create a list of everything you spend money on during the course of a month. This will include the essentials, like your home loan or rent payments and bills. You’ll also create a list of unnecessary expenditures, which is where you should look to save money. Cut down on any unneeded expenditures and put the money into a savings account.

What to do next

Recession-proofing your home can seem difficult. The burden of a home loan, alongside your other bills, can make it seem impossible to save money, but you can do it with the right help. Follow these three steps to get started:
Find a better deal on your home loan with UNO.
Calculate how much you need to borrow if you’re considering a home loan.
Book in a quick call with our customer care team.
This information is general in nature, and you should always seek professional advice when making financial decision. This information in this article is general only and does not take into account your individual circumstances. It should not be relied upon to make any financial decisions. UNO can’t make a recommendation until we complete an assessment of your requirements and objectives and your financial position. Interest rates, and other product information included in this article, are subject to change at any time at the complete discretion of each lender. Book a call in with UNO

Book Call Now

UNO home loans

Need help with your home loan?

UNO Brokers are available night and day for a quick review or your situation and bring expertise that will support better decision making that will save you time and money. Book in a quick call when it suits your busy schedule

Get Started

Related Articles

TESTIMONIALS

What our customers are saying

John Cahill
March 7, 2024
Scott Wilkinson was my broker last year when I sought finance for a new property investment and refinance for my property port folio. He was an absolute delight to work with. He was always professional, on time and always available to talk at a moment's notice to discuss my credit options and give well considered advice; usually this was very much after-hours due to my work commitments during the day. He was always happy to talk. I had not used a mortgage broker in a long time opting to do the re-financing myself. This was primarily due to disappointing experiences I'd had with mortgage brokers in the past. However with the increasing complex nature of dealing with credit providers, I could see that I needed a good advocate to act on my behalf for this particular refinance. In all honesty I did not hold much hope that in the current credit environment I would be able to secure the finance I required for the new property investment I was wishing to secure. Scott found a way however and was able to secure the finance along with the refinance of my portfolio. I have since referred friends to Scott and I know they have been very happy with his work. He is ideal for property investors who have busy day-jobs and need someone who understands property investment strategy and is able to tailor credit advice and options to their needs. Scott provides this advice and information in a way that is clear and concise. He kept me up to date continually during the application process. He made what could have been a very stressful and frustrating process easy and straightforward. I could not recommend Scott and the team at UNO Home Loans more highly. They are all a delight.
Read more
Sally Mackenzie
February 19, 2024
We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
Read more
Rod
February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
Read more
Angela Biddle
February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
Read more
Fotis Bikas
January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
Read more
Tomoharu Matsui
January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
Read more
Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
Read more
Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
Read more
Karaipu Brown
December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
Read more
Chris Anderson
December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
Read more
Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
Read more
Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
Read more