The year 2020 has been one for the history books
No-one could have predicted what was to happen in 2020. Amid bushfires, Covid-19, lockdowns, economic shutdown, recession, stimulus packages, changing lending policies regulations, there was a lot to keep track of, so here is a summary of the good, the bad and the ugly!!!….
- 14 January – The WHO warns the world of the risk of a new type of coronavirus
- 11 February – COVID-19 is officially named
- 1 March – First Australian death from Covid-19 reported
- By 9 March 2020, the fires had burnt an estimated 18.6million hectares or 186,000 square kms, destroyed over 5,900 buildings, including 2,779 homes and killed 34 people
- 12 March – First round of economic stimulus packages (Cash Boost) announced by Prime Minister, Scott Morrison
- Mid-late March – Lockdown restrictions progressively implemented by the Australian Government
- 19 March – The RBA pulls “the emergency lever”, cutting the official cash-rate to a record low of 0.25%
- 19 March – The Ruby Princess cruise ships docks in Sydney
- 22 March – $70billion JobKeeper package announced
- 8 May – As the curve of Covid-19 cases has flattened, the Australian Government announces a three-stage plan to begin easing lockdown restrictions
- 3 June – As the March quarter GDP figures are released, it is announced that Australia is in its first recession for 29 years
- 4 June – $688million Home Builder package is announced by the Australian Government to breathe life into the residential property market
- 24 June – ASIC introduces the “Best Interest Duty” obligations replacing the “Not Unsuitable” guidelines, clarifying that brokers are expected to factor both current promotional offers from lenders and the availability of government schemes into their decision-making on which loan product best meets their client’s needs.
- 2 August – State of disaster is declared for Victoria
- 25 September – Changes to the Responsible Lending Obligations under the NCCP are proposed, simplifying the credit process to move from “lender beware” to a “borrower responsibility” model.
- 2 November – The reserve bank has slashed its official cash rate to a new historic low of 0.1% as it desperately tries to prop up an Australian economy that has been smashed by the coronavirus crisis.
- 17 November – NSW Government proposes a transition from stamp duty on property purchases to a land tax, as part of a suite of measures designed to stimulate the economy as it recovers from the coronavirus recession.
- 2 December - Australia ’emerges from recession’ after GDP figures show economy growing for the first time this year………Definitely time for a HOLIDAY!!
So, what are the market indicators suggesting for 2021?
With the economy taking a beating in 2020, many will be sitting cautiously watching and waiting to see what the impact will be on the property market before making any big moves in 2021.
- Record low interest rates mean buyer confidence will continue to increase
- Aussie expats are buying to move home, as a safe haven option
- The housing market will remain under-supplied
- Purchases will be more based around functional uses of a home
- 2021 will be a vendor’s market
- Quality apartments will still sell well
- 2021 is the year for investors
- More parents will be helping their children into the property market keeping a healthy activity with First Home Buyers.
- Regional and sea-change locations will see a resurgence in popularity
Only time will tell if we are on the money!
If you would like to chat to George about your specific financial needs, please feel free to call him on 0411 216 849 or book in a time to chat.
PS This article is prepared based on general information. It does not take into account individual financial or property objectives or needs and is not financial product or investment advice.