top of page

Financial Market update - August 2020

Synergy Private Wealth

Perspective is key through the COVID-19 crisis, and although Victoria and New South Wales are battling to contain a second wave of the virus, we can’t lose sight of the fact that Australia still has some of the lowest rates of death and infection in the world. Our economy is also proving more resilient than those of our peers, and, barring a significant deterioration, should return to growth in the September quarter of 2020. The success of Australia’s stimulus package can be attributed to the way in which it was primarily funnelled through to direct payments for businesses and households. Overseas, stimulus packages have tended to rely more heavily on loans and grants, and those who are eligible often don’t apply. Here, stimulus payments have landed quickly and directly in bank accounts and that money has been more effective in supporting businesses and shoring up consumer demand through the pandemic.


The extension of both programs by the Federal Government, announced well ahead of their September expiry dates, is a welcome move and we’re confident that a further extension will be granted if and where necessary before the new deadline in March 2021.


Unsurprisingly residential property located in COVID-19 hotspots of Melbourne and Sydney saw demand and valuations for property decline. Adelaide however bucked the trend and was one of three cities to record house price growth over the June quarter.


Adelaide’s outlook for residential property has improved vastly in recent weeks, as sentiment towards buying a dwelling reaches a six-month high. Affordability is clearly front of mind for prospective buyers, with Adelaide offering one of the lowest purchase prices of all the capitals as well as offering buyers a great lifestyle.

More broadly, although panic selling of shares has slowed, we expect that the “road to recovery” will continue to be bumpy. Dividend payments from many of Australia’s largest companies will continue to remain under pressure and may be postponed in some circumstances. Interest rates will also remain low for the foreseeable future. To ensure we have a strong foundation in place to meet your goals, Synergy Private Wealth also aim to work with your current professional service providers, but may also suggest you seek additional guidance from one of our trusted partners who can provide specialist guidance regarding taxation, loan arrangements or your estate planning needs.

Synergy Private Wealth

6 views

©2024 Synergy Private Wealth

Joshua Fileti and Shane Case are authorised representatives of Paragem Pty Ltd AFSL 297 276, ABN 16 108 571 875.

Synergy Private Wealth is the registered trading name of Synergy PW Pty Ltd, ABN 706 109 470 03, corporate authorised representative of Paragem Pty Ltd.

The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.
 

Privacy policy | Complaints policy | Financial Services Guide (FSG) Pt 1 | FSG Part 2 - Joshua | FSG Part 2 - Shane  

bottom of page