Updated: Mar 1
The global COVID-19 pandemic hit the world hard, fundamentally affecting how we learn, work, play and even invest. As state lockdowns and national restrictions tightened, one financial topic evolved from a national goal to a seemingly full-blown obsession:
COVID-19 and its effect on the Australian property and share markets
Australians are determined to own property, aren’t we? A house, a backyard, a garage; it’s the idyllic great Australian dream. However, the pandemic seemed to charge this desire with rocket fuel. Newcomers urgently sought entry whilst existing homeowners wanted to either upsize or seachange. Why?
One could suggest it was the result of isolation fatigue. With so many households facing the prospect of continued lockdown, homes became gilded cages for many. Others perhaps used their lockdown to sit down and assess what was genuinely meaningful in life. Many found their answer closer to nature, open spaces and a sense of community perhaps only found in particularly close-knit suburbs or country towns. Whatever the reason, the Australian property market surged. Panic set in for those not yet on the ladder, their dream to own becoming increasingly tenuous.
However, attention did not focus solely on property. Indeed, existing owners identified capital growth and equity opportunities through the share market. With share price values also rising, first-time investors wanted a slice of the action. Moreover, they now had the time to learn about the stock market. So, where do these peaks now leave us?
Where the ‘wealth effect’ leaves Australians
We are now at a remarkable precedent, with so many Australians sitting on equity yet not entirely sure what to do with it. This is accentuated as we move into 2022 with talk of an imminent interest rate rise. There seems to be a collective holding-of-breath as pundits anticipate that a fall-out from 2020 and 2021 is still to come.
Certainly, ActOn Wealth has seen a rise in clients focussing primarily on investment. Now perhaps more than ever before, there is a need to look at diversifying investment portfolios. Particularly encouraging is the growth in clients keen to explore ESG (Environmental, Social, Governance) investments.
How can ActOn Wealth help you through the ongoing effects of the pandemic?
Our team of experts can financially guide you through these unusual times in many ways. We develop bespoke strategies with an eye on the long-term future and a roadmap through the short to mid-term. If you’ve not yet entered the property market, then we help to assess your reasonable borrowing power and how much you can realistically spend without forsaking your lifestyle and future goals. In addition, we identify and help realise opportunities and strategies you may not have considered.
If you have your eye on investments, then we’re here to get started by developing a structured plan around the assets and classes best for you. We help shape these investments to achieve your short, medium and long-term goals.
We understand that these unprecedented times call for direction. You might feel uncertain about what lies ahead, and that is perfectly understandable. But let us be your financial beacon. We’ve grown our team to ensure unparalleled expertise and service to all our clients - new and existing - so you don’t have to do this on your own. With ActOn Wealth, you’ve got a whole group behind you to offer support, expertise, knowledge and advice. So let’s work together to build your wealth, pandemic or no pandemic.