Property: Where is Australia Headed Post Covid?

There's no certain answer at the moment. Different people are predicting different outcomes. But it's important to understand the effect that these outcomes may have on you and your investments.

So, to help you prepare for the other side of the COVID-19 crisis, I've laid out some things for us all to think about. The points below are simply my opinion based on my research from many different economic, political and health experts and in no way am I stating them as facts, but more points for you to think about and reflect on - and to disagree - or agree with...

So I think:

• There will be a slow and gradual shift out of city centres to more regional areas, especially those with good infrastructure, lifestyle, and access to health services.
• Large corporations will realise that they need less office space. With a significant percentage of their workers being able to work from home, corporations will save tens of thousands in rent.
• Inner-city commercial property will be the hardest property market hit.
• Online services, apps, and business tools which make working remotely more accessible will flourish. Take Zooms 250% increase in value as an example.
• The mean residential property price in Australia will fall, but this will be caused by the top end of the market prices falling.
• The average residential property price in Australia will not suffer any significant falls as there is simply too much government and banking support to allow repossessions or major selling sprees of residential houses.
• Rental incomes will not rise for the foreseeable future, so they may appear to fall.
• Household numbers will rise from the current average of about 2.7.
• Interest rates will stay low for the medium term but may start to creep up to nearer 5% in 5 – 8 years, but they're unlikely to go beyond that.
• Unemployment may reach double digits.
• There will be a vaccine, but we just don't know when.

Remember, these predictions are based on my readings, listening and fact-finding so I accept I could be way out here but it's good to think about these things.

Suffice to say, some predictions paint a bleak picture, while others can give us a glimmer of hope – It simply depends on your personal situation.

But after delving into these potential situations, I thought it would be good to leave you with some certainty. So, here's what we can be sure of:

1. Banks are still writing loans to everyday homeowners and investors.

2. There are more cash buyers in the market than ever before.

3. Everyone still needs a place they can call their own, whether they're renting or owning a property.

And we will bounce back – we always have and we always will. Just continue supporting each other and we will get through this storm together.

Stay safe out there.