What will life be like post-COVID-19?
Even though many of us have spent weeks dreaming about the day things are going to get back to normal, it may not be as smooth sailing as some of us would like.
We can expect to see lots of changes. Your favorite café might not survive the shutdowns. You may greet friends with a nod or wave rather than a hug.
There will be practical and economic changes that will affect our jobs and property markets, and that’s what I’m going to talk about today with my guest Pete Wargent.
The shock of a pandemic will have shaken a lot of people’s beliefs about the world, but there will also be positives coming out of it.
Unfortunately, those who have lost income and lost their jobs will have challenges to overcome.
This may lead to stress and anxiety.
But this is not going to be a gloomy show. I’m an optimist and a realist, and after today’s show, I hope you’ll be more prepared for what comes next.
What will life be like post-COVID-19?
- Whether or not a vaccine can be found, we’ll probably see changes in the way that we live – we’ll probably be more cautious.
- Investors may also approach their investments with more caution than they did previously.
- Low-interest rates will probably continue for some time – at least until unemployment comes down.
- It could take at least 4-5 years for employment to decrease to previous levels.
- Low-interest rates will be good for property in the medium to long term.
- Lower wages growth, on the other hand, will impact people’s ability to pay more for properties and could negatively impact the property market.
- Local recoveries will be uneven. Some states are already doing better than others.
- Because lots of people are getting stimulus or grants from the government, they’re not feeling as poor as they usually would during a recession. It may take time for people to wean off of this assistance.
- Lower immigration will affect economic growth and housing demand in certain sectors.
- Certain business models, such as retail, are going to change. We’re getting more accustomed to shopping online, working from home, and having virtual meetings.
- The younger generations who are just entering the workforce or would earn more during this time are likely to suffer more than others.
- Young Australians could face as much as ten years of pay cuts and youth unemployment is likely to remain high for several years.
Links and Resources:
Metropole’s Strategic Property Plan – to help both beginning and experienced investors
Pete Wargent’s new book Low Rates High Returns
Some of our favourite quotes from the show:
“I think we’ve realized that we’re all in the same ocean, but we’re not in the same boat.” – Michael Yardney
“As the economy picks up and life gets back to normal, so will our property markets.” – Michael Yardney
“I think the first thing you should do is practice noticing what’s great about what you’ve got.” – Michael Yardney
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