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Can We Get Back to "Normal"? The Economy & Property Prices

Restrictions are likely to ease in four-week increments which allows the National Cabinet to monitor the impacts of each change. The federal government mentions that a key indication of the economy reopening is when schools return back to normal. The governments five step process over six or so months aims to get Australia back to normal. The first step aimed at fighting the virus, the second aims at providing relief to Australian through financial support such as JobKeeper and JobSeeker payments. The third step aims at reopening the economy safely, and step four aims at building consumer and business confidence in order to allow for the economy to recover. The final step aims at using pro investment policies to reset the economy (ABC, 2020).

Although many have predicted a possible fall in property prices, however it does not mean much to young Australians, more than half of households aged under 60 could be renting in 20 years. Many are now suffering from job loss and rent payments which means they are still unable to purchase property (ABC, 2020). “House prices are set to bottom out by June next year, helped by improving affordability, but a recovery is likely to be held back by high unemployment that is expected to remain above 7 per cent until 2022, ANZ predicts”. Even though mortgage deferral serves to help the current situation, the economy may be strongly impacted for the coming years by the fall in the rental market, weaker household income and lower populational growth (AFR, 2020).

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