COVID-19 impacts on the Australian economy & housing market

You're being actively discouraged from opening cupboards at open inspections for heavens sake so my crystal ball says it won't be good. Lots of 'Vendor Bids' followed by 'Passed In'.

Have banks even been publicly asked if they are maintaining the same lending criteria as they did two weeks ago before the crisis really blew up in Australia? They must be changing their valuation policy in the rapidly changing financial landscape hence I'd be surprised if vendors expectations of 2 weeks ago were remotely met. Vendors willing to take a large haircut on expectations may find that is still not enough.

Q: What encouragement is there to buy a property within the next 4-8 weeks?
A: None

 

well, maybe im getting ahead of myself or overreacting, but until todays announcement of no people in or out of australia if you are not a citizen or permanent resident,

my mindset has officially gone from "this isnt great but it will all be fine with a bit patience" to "We are in the *****"

and as a result property prices will fall more than a few %

 

Banks offer mortgage payment holidays during coronavirus chaos | Daily Mail Online

 

Auctions will surely or already are being cancelled en masse. I think this weekend we will see clearnace rates evaporate and strong signals that the property market is coming to screaming halt.

 

Virgins done the same. About 60% of staff as of this month will be forced to take leave withou pay, even though most employees have annual leave banked and long service leave. They aren't getting it, they have to apply for it later if it gets approved. Total scam that is.

Wait till next month, you heard it here first, all domestic travel will be grounded(opinion).

 

If they have next to no income being brought in, where will they get the money for holiday or redundancy payouts? There is no cash flow and reserves will be for business essentials. This is a battle for their existence.

 

Absolutely devastating for the aviation industry, I'm not affected so far but this is absolutely terrible and it's about to get worse for many of my friends. Hard to accept when it's viable businesses being quickly dragged to the edge of bankruptcy.

 

I think all the travel industry. Tour/transport operators (air, sea, land), hotels and accommodation providers, holiday organisers/travel agents, cruise holiday providers, travel insurers, tourist attractions, resorts... and all other businesses catering to tourists. This one industry employs so many people. Unfortunately not the most stable industry.

 

Let’s put this into perspective. Now Imagine all those workers in above businesses you mentioned are out of a job. There income supported every other business, this has to be big. I pray that it’s a quick recovery.

 

I don't think there is such a thing as a stable industry except healthcare. This is just the start, it will affect nearly all sectors of the economy unfortunately.

 

How will they survive if this plays out for 12-18months? I just can’t see people flying in 12 months, there wont be any confidence.

 

Business travelers are still flying domestically but they only make up a percentage of a typical flight.

 

I agree hence my "battle for existence" quote. Add in Flight Centre, its share price slumped from around $40 a month ago to under $10 today with no end in sight. Will it survive? Does Govt support every company and organisation affected? It's a long list. Add in the AFL/NRL and every other affected sport, it becomes a very long list. No easy fix.

 

Yep. Pack of Dominoes... and not the pizza....

 

Hi @Barny, would you agree that if under cooling off for a property its best to pull the pin with all the uncertainty? Even if bought for maybe 7% under value?

 

Man I’m very tipsy right now and I don’t drink, well hardly ever, so maybe don’t take any advice from me.
I really don’t know your financial scenario, but hard to feel confident about the market at current time.

 

I read an article that sounded like they were passing it on to existing fixed customers which surely wouldn’t be the case...

 

100's of billions to be thrown at the economy soon to avoid depression... This will be the greatest stimulus seen in our lifetime. Let's hope it's enough.

 

It won't be. IMHO everything done so far has been reactive, when we needed proactive (go early, go hard). Expect pain and a lot of it.

 

Prediction: Until there is a vaccine were in lockdown. That's over a year. People will break the rules after a month or two. The virus will run riot and the bodies will pile up.