Owen Raskovich

Welcome to this episode of the Australian Finance Podcast.

My name is Owen Raskovich.

In this episode, I'm by myself, it's little old me and you, just talking about property.

I'm hoping to give you the 101 of economics for property, how you can think about the latest forecasts and why they're almost always wrong, what the...

forecasts and commentary mean to you as a renter, homeowner or investor or first home buyer and some of the steps that you can take to make sure you're ready to pounce on one of these properties if they come up cheap in your neighbourhood.

I hope you enjoy this episode of the Australian Finance Podcast.

Welcome to this episode of the Australian Finance Podcast.

I'm your host, Owen Raskovic, and in this podcast, I'm by myself, mainly because of poor timing on my behalf with Kate.

We had hoped to do a particular episode this week, which we're no longer doing, and that

This week, there's something really topical that's come up and I figure it'd be worth a bit of a conversation about and I guess trying to mystify why some of the things that we hear and read in the news about property prices really aren't that reliable and kind of how you can best think about investing for the long term, the difference between lifestyle assets and I guess investments and I guess the

opportunity that arises from prices falling so no doubt if you own a property or if you're looking to buy a property maybe it's this year maybe it's next year you've probably heard or even suspected yourself that property prices will likely fall or probably just stay flat

in 2020 and maybe even into 2021.

One of the numbers that we've seen thrown around recently is a 30% fall.

And some experts, otherwise known as pundits or commentators, have suggested that property prices could fall by up to 30% if the recovery from COVID-19 restrictions and lockdowns and the economic impact isn't as, I guess, dramatic or as quick as people would like.

So, I think the best source of information for this that I've come across so far is the Commonwealth Bank.

And the Commonwealth Bank obviously is a bank that lends to households.

So, it kind of has its finger on the pulse of, I guess, what's important and the things to think about.

And they've got a good team behind them that, you know, can make these types of assumptions and these models that suggest different outcomes for the property market.

And one of the ones that I came across on the weekend when I was looking into this is they've kind of bucketed it into two scenarios.

They've said, oh, you know, there's the recovery that happens quite quickly and the economy, the Australian economy recovers quite quickly.