In a positive sign for property markets, Australians are looking to cut their spending rather than sell investment properties to manage the impact of COVID-19 on their finances, according to new research.
Recent research by Fidelity based on a CoreData survey has indicated that Australians plan to reduce their spending as a way of minimising the impact of COVID-19 on their personal situation, as opposed to selling down assets such as property.
Fidelity International, managing director, Australia, Alva Devoy said the top choice was reducing discretionary spending such as eating out, with 63.4 per cent saying they would do this over the next month to six months.
Just over half said they would reduce spending on essential items like food and clothing during the next one to six months. There were few respondents planning to sell down assets, including shares and investment properties.
“Interestingly, the sale of investment properties remains low, that’s helpful because we don’t want stress selling in the system,” said Ms Devoy.
“However, worryingly, 26.1 per cent of people say they plan to take the opportunity to access their superannuation early in the next 12 months.”
Outside of accessing superannuation and reducing spending, seeking additional work and applying for rent reductions were some of the other actions respondents planned to take, particularly those in poor financial situations.