Kennards Self Storage April eKourier

FEATURE

.

ONE YEAR AFTER COVID...

Well, here we are in April 2021 and over a year ago the entire planet went into lockdown in confusion about a worldwide pandemic!! What a difference a year makes. Each of our States and NZ have been through different lockdowns and with different lengths of lockdown and restrictions. In Australia we have fared far better than most of the world and things are starting to look and feel positive… or are they?

S hould we be concerned or getting the Champagne out? Here are some indications from the wider economy and globally: • The USA has just delivered a massive $1.9 trillion support package which will be a massive boost to the entire worlds’ economy. It will be a bit of a sugar hit but will certainly boost the worlds’ economy. • China had positive growth in the year to Dec 2020 and is forecast to grow at around 10% in 2021 – this is a very good sign for the world and in particular for Australia who supplies many raw materials and minerals, specifically iron ore which accounts for just over half of all Australian exports. • Vaccines are being rolled out across the world and significant reductions in cases and hospitalisation is being seen. Hospitals are freeing up spaces for other medical events which takes enormous strain off the medical sector. • Australian property prices are expected to grow approximately 10% for the next two years. Great for owners

spent to boost the economy, despite most Government support stopping at the end of March. • Some issues being faced are exports to China no longer being accepted. New markets for items like Coal and Barley have already been found and areas like Wine looking for new market. • Students are a concern for the entire industry and also associated residential study programs like MBA’s etc. Based on all of the above factors it appears things are looking positive and Australia and NZ should fare well in the next few years. We should therefore feel fairly optimistic and positive about the future and look to enjoy our return to 'normal' life, whatever that looks like. Pull up a storage box and toast yourselves to getting through an incredible year, and hopefully many positive events/experi- ences/travels/reuniting with family and friends in the near future… Anthony Rous Chief Financial Officer

but harder for buyers to get into the market. This is mainly for single dwellings and not apartments where there is some oversupply. NZ are also seeing surging property prices. • Interest rates are at all time lows. The Reserve Bank of Australia are saying rates will not go up till 2024. The USA have also locked in interest rates at zero until at least 2023. • Australia has seen a massive reduction in tourists however, we do spend $30 billion more on overseas travel than tourists spend within Australia. So, while International Borders are closed and hopefully Domestic Borders do not close again, the spending by locals in Australia will far outweigh the loss of tourist dollars. • Business confidence is at a 10 year high which is a sign of optimism and encour- ages people and businesses to spend. • Great rains have delivered bumper farming crops across the country and with follow up rains, things are looking good. • Australian savings are at an all time high. Cash balances are available to be

12 Kennards Kourier April 2021