Australia is in for a period of hardship with wages falling and anxious consumers who are saving rather than spending, according to former Coalition Treasurer Peter Costello.
He says low interest rates can’t last, and people are nervous and don’t trust politicians.
Australia’s luck is “beginning to run out”, the chair of Australia’s Future Fund told a property forum.
“We’ve got anxious consumers who are saving money, with real wages falling in a country where incomes have peaked,” he says.
“And they’re distrustful of the political class where consensus is breaking down. We need to work out how to put things back together.”
Costello says it could still be a good time for property if things revert to normal.
“But there could be a fair bit of hardship before we get there,” Costello says.
“Between now and then there will be enormous adjustment in our society. Those that are nimble and those that are quick will take advantage, but it’s being ahead of the curve is what matters.”
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