Australia wide all of us have had to adapt to change in some way. Whether that was through having to defer mortgage repayments, decreasing tenants rent, developing new business offerings to get your product to your consumer, working from home or taking on JobKeeper to get through this rollercoaster that has been 2020.
JobKeeper and JobSeeker have been extended, and other stimulus packages that are still in place such as the Home Builder Scheme, which questions how the economy may shift in the future. As each action has a reaction, mortgage deferrals will come to end in a staggering process and other initiatives will eventually do the same. This may see job loss, which could be immediate or could take a few months to come to fruition. In saying that though, many others will hold onto their jobs and new jobs will be created.
The Government is expected to continue to intervene.
Discussions are already happening between banks and regulators as to how they can
support those who have deferred their mortgages once the deferral period ends. Come
2021, we will not see Australia fall off an economic cliff.
We aren’t over the rocky road before us, but the impacts of this historic event will be less
immediate and severe than predicted. As humans we survive and adapt; this will be no
different to past events, where house and share prices went up, society improved and we went back to our little piece of “normal”.