The coronavirus has clearly infected Australia.
And it doesn’t discriminate rich or poor, young or old.
I heard it said that we are all in the same boat.
But it's not like that.
We are in the same storm, but not in the same boat.
Your ship could be shipwrecked and mine might not be or vice versa.
For some, quarantine is optimal.
A moment of reflection, of re-connection, taking life easy, or having a cocktail or coffee.
For others, this is a desperate financial & family crisis.
For some that live alone, they're facing endless loneliness.
While for others it is peace, rest, and time with their mother, father, sons, and daughters.
Some are getting money from the government through JobKeeper and JobSeeker while others are working more hours for less money due to pay cuts or loss in sales.
Some want to go back to work because they don't qualify for unemployment and are running out of money.
Others want to kill those who break the quarantine.
Some are home spending 2-3 hours a day helping their child with online schooling while others are spending 2-3 hours a day to educate their children on top of a 10 to 12-hour workday.
So, we are not in the same boat.
We are going through a time when our perceptions and needs are completely different.
Each of us will emerge, in our own way, from this storm.
It is very important to see beyond what is seen at first glance.
Not just looking, actually seeing.
We are all on different ships during this storm experiencing a very different journey.
And in today’s podcast, I want to chat about how the coronavirus crisis is going to affect different demographics and generations with leading demographer Simon Kustenmacher.
As always you’ll find my chat with him educational, informative, and lots of fun, so welcome to today’s episode of the Michael Yardney podcast.
Topics We Discuss in This Episode:
- We will see a slowdown of migration intake for at least two or three years
- Australia will have 0 net migration or negative net migration for 2020
- Migration was the main driver for the housing market, so this will have a major impact on property
- The small towns will be hit first – bad news for regional Australia
- Temporary visitors like students or short-term workers will be affected as well. This, in turn, affects the short-term rental markets, like student accommodations and Airbnbs.
- Regional Australia is somewhat reliant on temporary workers, so this is more bad news for them
- Different generations will be affected differently
- Baby boomers who are now about to retire will see their super balance shrink by 20% or more
- Some may have to put off retirement
- Holidays overseas are also probably canceled for some time to come
- Local tourism may be on the rise, which may be beneficial for Australia
- Baby boomers may find themselves supporting adult children who have lost jobs
- Gen Xers will probably suffer a lot from the coronavirus
- Xers are at a time in their life when they’re most likely to be overextended and spending every penny they earn
- Millennials are in a better position to ride out the next few years
- They’re reaching family formation stage of the life cycle
- More likely to have jobs where they can work from home and will want homes that allow for that. Millennials will need larger homes
- They may look for homes in the suburbs or in satellite cities
- Gen Z is concerned with global issues
- They’re in a position to ride out the pandemic and recession before kickstarting their career
- The pandemic may be the kickstart needed for working from home to happen on a large scale
Links and Resources:
In these challenging time why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors.
Follow Simon on YouTube
Some of our favourite quotes from the show:
“Economic growth comes, I guess, from certain efficiencies and producing things more.” – Michael Yardney
“Even though we all think we’re unique and different and special, we’re really all much the same as others.” – Michael Yardney
“Humans aren’t logical. We believe we’re rational, but we’re not, and at the moment emotion is driving a lot of what we’re doing.” – Michael Yardney
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