Who will be the first person to lose their home to COVID-19? It's only a matter of time.
In the new year, some households will be forced to confront the harsh reality that either by joblessness or reduced income they are unable to keep up with their old loan payments.At some point, our economy – suspended in mid-air, carefully frozen in time since March 2020 – must stand on its own two feet again.
No one is saying the taps will be turned off tomorrow but at some point, they will. Then the real pain will come. For decades, Australians have built their wealth and funded their retirements through rapidly rising home values. To date, home values have fallen only slightly since COVID-19, keeping a floor under household confidence.
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