There’s cause for much optimism about our economy and household budgets in 2021! 🎉
A massive global effort that’s underway will produce positive social, economic and environmental change; all under the cover of the lock down and the distraction COVID provides.
What would a trigger have to be to shut down the planet, incl. businesses, schools and universities, with everyone told to stay home and accept government handouts?
What’s really behind locking down ‘planet earth’. Each day more people begin to [think for themselves and] question all we are being told; but more on that soon...
Two questions that I’m repeatedly hearing from clients; reworded to best reflect what’s being asked:
Q1: Should I take advantage of being allowed to withdraw up to $20,000 from my superannuation to help me buy an investment property?
Q2: Is it better to wait and see what transpires with COVID, employment and the economy, or is it better to buy real estate now - while fear and uncertainty holds back demand?
I’ll address Q2 first. During the early days of the pandemic I recommended clients sit tight and watch for how governments and markets responded. My opinion now is that the time for waiting has passed. Our economy is about to RISE.
I am not offering advice; that must come from a financial adviser.
With regards to Q1 above, the purpose of superannuation is to provide for your retirement. Thus, it’s your responsibility to be mindful of your fund’s performance and alternate ways that may improve results.
That said, what’s best for you and your super may not deliver the best retirement outcomes for somebody else. Remember, it’s ‘horses for courses’, not ‘one size fits all’.
Donna, a successful investor I work closely with, recently said she would make the two super withdrawals and take the entire $20,000 “because she knew she’d do a better job with it in real estate than her fund manager would in shares”; which she considered too volatile.
Donna concluded she’d be better of because:
SUPER WAKE UP
My point is not about what you do with your super, nor am I suggesting what was good for Donna would be for you. It’s about being awake with respect to your superannuation and what it could grow into.
AUSTRALIAN ECONOMY TO GO GANG-BUSTERS IN 2021
I’m so excited about where I now see things headed. I don’t think you can yet imagine how good 2021, and beyond, will be. As far as real estate goes; I believe it’s time to jump in.
Why? Because behind the scenes and at a frantic pace, things are being rolled out / put in place. Watch closely as the government continues to drip feed us with consistent positive announcements.
It is not unusual for my economic predictions to fly in the face of what is being said by economists, and reported in the mainstream media. And this time is no different!
Technically, Australia is likely to fall into recession given that status is awarded to an economy that experiences two consecutive quarters of negative economic growth.
Recessions normally mean many years of pain as an economy climbs its way out of a hole. But I do not believe that will be our experience this time as our economy quickly rebounds.
With a ‘business as usual’ worldview I would not hold such optimism. I too would be suggesting that it would take generations to get Australia back into the black.
That is simply not how I see things playing out. I do not believe that our kid’s grandkids’ are going to be lumbered with a mountain of national debt left over post Coronavirus (as we keep hearing will be the case).
Consider for a moment some of the things we have already witnessed in Australia since the COVID lockdown:
One big, bold prediction I’ll make is that these measures, announced as short term, will turn out to be the ‘appetiser ahead of the main meal’ - a taste of what is to come, you might say.
You would be justified in calling me ‘crazy’ if your economic worldview was based on things going back to how they were; which is what I am predicting is not going to happen.
Changes… for the better (it’s IMMINENT)
Additional support for the aged and unemployed are the start of what I expect will be a series of economic initiatives to be announced soon. These will make way for an economic boom like we have not known previously (watch this space).
Sorry, but I’m restricted as to how much I can say here. Let me leave you with these few thoughts:
NICK’S PERSONAL OFFER
I will give 45 minutes, at no cost and with no obligation - an online Zoom meeting or phone hookup - to discuss and elaborate on anything I have discussed in this mailout.
As much as I’d love to spend time and educate anyone interested, time won’t allow that.
Thus, the first six respondents who have considered an investment property purchase within12 months but have questions around the economy and timing.
If that’s you, and you are serious about plotting the best path forward, then I will happily give my time to assist you to find the answers you seek.
Until next time, I wish you every success in growing your financial future.
[DISCLAIMER: We expect that until the US Presidential election on 3rd November we will see a continuation of:
Politics has a funny way of distorting our perspective from the reality of what’s ACTUALLY going on. Don’t let any of this distract or deceive you, however, the outcome will be great.]