🥂 A toast to 2020 🎉
- Synergy Private Wealth
- Jan 6, 2020
- 2 min read
Happy New Year and welcome to 2020..
Although share markets started 2019 on shaky grounds, the benchmark index ended the year very strong, by posting a return of over 20%..
Google searchers for “Australian recession” peaked in October 2019, however a recession in Australia is unlikely due to strong population growth and low levels of unemployment. The Federal government continues to support the economy through large infrastructure investments – something which should provide a substantial pipeline of work for years to come.
Australian house prices continued their recovery in December to post solid gains. Unbelievably, both Sydney and Melbourne recorded price rises of 5.3% for the year, while Hobart increased by 3.9% and 3.1% for Canberra. Brisbane recorded a rise of 0.3%, while Perth and Darwin experienced declines of 6.8% and 9.7% respectively.
Adelaide also declined by 0.2% throughout 2019, however I suspect much of this was due to the “noise” associated with changes to land tax. The South Australian government has finally passed legislation which will impact many property investors, however the market should begin to stabilise moving forward.
The cash rate is predicted to continue its downward trend in 2020, something which will likely further support property prices and equity valuations. Unfortunately retirees will most likely suffer the most as interest rates on traditional investments - such as term deposits will likely fall further.
As there continues to be substantial risks in various markets, it is more important than ever to remain calm and to ensure investments have adequate levels of diversification. If you have concerns about your current position, please do not hesitate to contact the Synergy team.
Lastly, our hearts are with the people going through these terrible fires which continue to ravage many parts of Australia. If you know anyone that is directly impacted, please do not hesitate to onforward our details, as there may be arrangements in place to offer support.
Synergy Private Wealth
