It looks like we worked our way through the recession, and slowly but surely, the coronavirus pandemic is coming under control.
That means that the recession that we had was very different from previous recessions.
That’s what I’m going to talk about today with Pete Wargent.
We’ll discuss what’s ahead for our economy, why the recession panned out as it did, and how that’s going to set the scene for the next stage of Australia’s economy.
Then, in today’s mindset message, I’m going to discuss the concept that yes, money can buy happiness… with some qualifications.
How will this recovery differ from previous recoveries?
Most economists predicted a recession due to the pandemic, but they differed on what it would look like.
Today we’re going to discuss why this recession, that we’ve now worked our way out of, and the coming recovery are different from previous downturns.
- We may no longer technically be in a recession, but it’s not all over yet. We have a long way to go to get back to pre-COVID levels
- Prices have stopped falling, even in Melbourne
- The reserve bank has released further interest rate cuts, quantitative easing, cuts in fixed-rate mortgages
- There are still issues relating to mortgage deferrals
- The response from the government to this recession has been very different from the responses to previous recessions
- There are actually more dollars in the economy because people can’t take vacations and spend money overseas
- Some of the changes in working – such as more working from home and online – are likely to stick
- A V-shaped recovery is probably too optimistic
- But Australia is still better placed than many other countries for a strong rebound next year
- Sydney and Melbourne will lead the way in double-digit housing price growth next year, with a strong performance in Brisbane as well
- However, some sections of the market will still lag, such as high-rise apartments in the CBD
Links and Resources:
Metropole’s Strategic Property Plan – to help both beginning and experienced investors
Some of our favourite quotes from the show:
“I think one of the government’s jobs is to look after its citizens.” – Michael Yardney
“Interest rates are not going to go up for at least three years, and that gives people a level of security.” –Michael Yardney
“Generally speaking, having enough money for the basic necessities in life, as well as your wants and needs, usually means a happier life.” – Michael Yardney
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