Covid 19 price correction: Place your bets!

More importantly, how will opportunities be identified and seized.

Market movements are not necessarily disastrous. They can provide great opportunities.

 

True. I disagree with suspending super contributions. If an employee is already in employment they are accustomed to their wage so giving them an extra 9.5% to spend each week would probably just be hoarded or spent on the mortgage, which isn't going to do much to stimulate the economy.

However, I believe that people should be entitled to access their super if they become unemployed throughout this period. At this stage it's literally a pandemic. The ABS is releasing employment figures for Feb 2020 today that should capture some of the fallout from the bushfires in the eastern states.

 

Pretty sure you can currently access under hardship terms. No idea on how efficiently and timely that method functions, though.

 

You may be able to withdraw some of your super if you have received eligible government income support payments continuously for 26 weeks and are unable to meet reasonable and immediate family living expenses. To be eligible for government income support payments is extremely difficult though.

 

I reckon recently constructed units in New South Wales (especially around Western Sydney/Wollongong/Central Coast) will take a 30-40% hit. I have a few clients who are property developers who are in deep s@#t at the moment with there recently finished projects.

 

As it should be. Accessing super early is a terrible idea.

 

China already appear to be in recovery.

They will print more money out of thin air. This will trickle into our market, prices will go up.

May be wrong Im no expert but I'm betting this is where we will be when this all settles.

 

Like many on here, I'm old enough to have lived through previous property crashes. I bought my first property at 19 years old, 4 miles from central London. 2 years later it had dropped in value by 30%.

This will end. The market will come back. And when it does, it will come back roaring like a lion and people will be falling over themselves to buy houses like the ones we own now.

 

I'm with Elmo

 

Do you consider that bargain?

Given the recent property price hike is 30% down is alot even market has gone up double?

 

As the COVID-19 crisis deepens, few Australians have much cash in the bank - Grattan Blog

Half of working households have less than $7,000 in the bank. Many have much less. Many Australian households will need help to get through this crisis.

 

??? They won't be even allowed to travel to AUS.

 

I'm thinking 15-20% is reasonable, even up to 30%, to correct the lunacy that has been the property market in recent times. The bubble was bound to burst sometime, it just took something like covid-19 to bring some sense and sanity back in these crazy times.

 

And how long do you think that will be for? Highly doubt that will be for more than a year at tops.

That said they still have family and access to sight unseens through the use of BA's and relatives. This had happened before, still happens and will happen again.

With interest rates getting lower and lower more and more people who can will be able to purchase. This will create a demand when we have had limited capacity to create supply during the next few months to a year.

This will in turn drive prices up. Maybe I'm wrong but I still believe prices will go up for those with the capacity to hold assets.

That said, I have very little on the line in comparison to many of the investors on this site, so I hope for all our sakes I am right.

 

Look at areas must affected by international travel, these areas will have many of great oppurtunities to buy in the next few months and will bounce back once the travel ban is lifted. Of course these economies need to be more diverse than just tourisim as they may never bounce back. I can think of a few places I'll be keeping my eye on!

 

If we are fair dinkum they will actually be the first ones allowed to enter Australia as this all slows down based on risk. Not sure how welcomed it would be politically given the problem started there.

 

Bah humbug

A year's worth of lost income is a huge amount of money. Many will be unemployed, and it will trickle down to the general economy. Not just tourism and education, but also local small-medium businesses. People will be socially scarred for a while, and our Winter hasn't begun yet! That's a huge amount of money. Besides, any recovery from incoming Chinese will be a trickle drip feed rather than back to normal, and visitors from other countries will definitely go down as well. It's like 9/11, people will be scared to travel for at least 2 years.

The safest job these days is in healthcare, but it's a toxic career.

 

I'm in the community service sector and there is a ton of work, rough but stable. There will be plenty of services and jobs created in times like these. People just need to pivot.

Yes there will be a down time but I highly doubt that it is going to be that bad, media over hypes things.

Borders will open again, money will flow. We will recover!

 

20% on inner city and good stock
Up to 60% for mass produced units and land and house packages in outer suburbs

Inner city will recover quickly , the other stuff may take a decade

 

Thanks for the classic Aussie "she will be alright, mate!" optimistic outlook, but it's not that simple.

If the Govt pays $100-200 billion for the stimulus, this will blow the budget and they will be forced to find savings of $100-200 billion in the next 10 years or so when everything settles down. This is going to suck off $10-20 billion from the economy every year, if it doesn't want Govt debt to spin out of control. We will be suffering from a period of Great Austerity in the next decade or two. Goodbye tax cuts!

Retail is already faltering even before this, and after this episode of unemployment and low income growth, coupled with high levels of household debt, people would rather be saving money and/or repaying debt than spending, having been stung by this event.

I'm not trying to be pessimistic, but I have no reason to be optimistic.