Unless you’ve been hiding under a rock, you’re probably aware that JobKeeper is winding up at the end of this month. The lifeline that the government threw out to to keep businesses afloat during the pandemic is officially being removed.
What’s going to happen next?
Thousands of Australians have depended on JobKeeper for some months now to help them make ends meet. Without it, will the economy crash? Will unemployment rise? Will mortgages start to default?
More precisely, what’s going to happen in regard to the property boom we’re currently experiencing?
These are all serious questions that affect us all.
To find the answers, let’s start by looking back at what happened in 2020.
What We Can Learn From The Statistics
You can listen to your neighbour, your accountant, your cashier or your cat, and they will all have a different opinion. But numbers will always tell a clearer and more accurate story.
Here are some stats that should shine a light on what’s been happening in Australia’s economy up until now.
At the peak in the first quarter of 2020, a total of 3.6 million employees received JobKeeper payments. But by the close of the year we are down to about 1.6M employees. The last count was 900K employees.
Have a look at this graph here.
You can see that every passing day, fewer and fewer people are relying on JobKeeper.
Now, the CBA forecasts that 900,000 people will still be on the JobKeeper scheme when it winds up at the end of the month. But the question is, how many of those are at risk of losing their jobs entirely?
The CBA has crunched the numbers for different industries. Their predictions show that some industries will lose 25% of JobKeeper employees.
Medium-level industries will lose 10% or even as low as 5%. Here are the stats.
If we check another chart, you will see the stats reflect more worrying patterns.
The chart shows the estimated job losses (in the thousands) in high to medium risk industries.
So it seems safe to predict then, that high risk industries such as accommodation, food service, arts and entertainment, and transport will certainly feel the pinch.
But other industries are not looking too dire. Now, I don’t want to sound flippant when I say that thousands of job losses is not too dire. Naturally, it will have an enormous impact on many Australian families and I truly feel for everyone affected.
However, on a macro scale, these numbers are not nearly as bad as they could have potentially been, especially when you compare our statistics with what’s happening around the world.
How Much Will It Really Hurt?
The stats reflect a worrying scenario for many people whose jobs are on the line. However, even in the worst-case scenario, overall the economy is going to be ok. We have not reached the tipping point of many other countries whose economies are in freefall because of the enormous pressure from tight Covid restrictions.
One thing is for sure: Australia has done well during the pandemic. On the whole, we’ve made the best out of a terrible situation.
Even if 250,000 people lose their jobs, it won’t hurt the economy much. The job market is tightening a bit. I feel confident in predicting that the economy will mop-up with over 250,000 job creations in three to six months.
This means there will be more money circulating, and more opportunities for those who leverage that money into a smart asset such as property.
Which is something that many Australians are doing right now, and will continue to do as we emerge from the economic dip and into a period of growth post-COVID.
A Boom You Can’t Miss
A lot of the changes happening now have to do with the world economy. Almost everyone has been printing a lot of money to get through COVID. As a result, we are seeing a property boom around the world.
But unlike many other countries, we are not printing a lot of money to keep our economy afloat. The Australian dollar has gone up in value, and our export trade is increasing also. All these will affect the economy.
When we look at what’s been happening in other first-world countries as well as the strength of our own economy, I can safely predict that we are about to see the greatest property boom in history – even after the JobKeeper winds up this month.
In fact, we are getting an economic boom, commodity boom, and property boom at the same time.
This opportunity comes once in a lifetime, and you’ll be kicking yourself years from now if you miss it.
Here’s how to take advantage of the property boom and build wealth through a positively-geared real estate portfolio.
First, get training to develop a good investment strategy. It’s the fastest way to grow in the property industry.
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