Welcome to this month’s edition of the Dot Monthly..
By now, I would have reached out to you either through a phone call, email or in person meeting to support you during the COVID19 Pandemic. I have relayed the options available to you from your bank by means of deferring your repayments for up to 6 months however I’d like to stress that this is NOT a free arrangement imposed by the banks – there is a requirement for the deferred interest to be repaid. This can be in the form of increased repayments or an extension on your current loan term.
I am available by multiple means of communication should you like to discuss and require support. You can contact me directly on 0406 207 230.
What impacts are we seeing because of Covid19?
Consumer confidence has slumped to record lows
Weekly consumer confidence data from ANZ shows consumer confidence has slipped to record low levels over recent weeks, lower than during the Global Financial Crisis in 2007 and the 1991 recession.
While consumer confidence has bounced back over the past two weeks following the announcement of the Jobkeeper package, it remains at recessionary levels.
Australians have tightened their purse strings
Regular data on bank card expenditure shows that consumer behaviour has changed. With consumers unable to eat out, we are seeing much more expenditure on food from supermarkets rather than expenditure on eating out.
Discretionary spending has also slowed significantly as people stay in their homes.
There are signs the property market is slowing
There has also been a slowdown in the number of new properties being listed for sale. We have also witnessed a big shift away from selling at auction with agents now withdrawing properties for sale or reverting to other sale methods, such as online auctions.
So what does a potential recovery look like for Australia?
Australians will be desperate to get out and about
People will want to get back to some kind of normalcy once the pandemic is over. Australians will be keen to get back to the office, eat out at restaurants, watch live sport and perhaps plan a holiday. However, the big question will be whether businesses that offer these goods and services will be able to re-open immediately.
There will be winners and losers in the end
The unofficial data shows COVID-19 is undoubtedly having an impact on all sectors of Australia’s economy, and it will have long-term repercussions for the country.
Clearly some sectors are more COVID-19-proof than others, and there are positive indications the property market could be one of the lucky ones.
MFAA Excellence Awards nomination
Onto a little more positive news – I have recently been selected as a finalist for the upcoming Mortgage and Finance Association of Australia Excellence awards, covering 2 categories –
- New Comer award.
- Young professional Award.
These accolades would have not been possible without you – I am deeply grateful for the opportunity to be of service to you. Good luck to the other amazing finalists at the upcoming awards night (Funny enough, this is also to be attended remotely!).
What has Dot been up to for the month?
Don’t forget to read up on the 15 year itch which is an E book I’ve authored to equip you with strategies to pay off your mortgage in under 15 years. The e book is available on the website or you can get in touch via email to request a complimentary copy.
As always, we hope you enjoyed reading the blog and should you have any questions, please feel free to email Connecting@dotfinancial.com.au or you can call us on 1300 000 DOT (368).