Covid 19 price correction: Place your bets!

"I’m not a big risk-taker. I stay away from things I don’t know anything about" - Wayne Gretzky

Please share with me your cristal ball.

 

You've missed my point, I was referring to the lead indicators, not the lag data.

 

I hope you're right. Just paid the 10% deposit on a place last week and wish we could get out now...Feeling too anxious about everything

 

It’s not all bad, have you done sums? , buying can still stack up , even now.. depending.

 

Hoping neither of us loses a job but if prices drop 20% it makes a fair difference when spending over $1m..

 

Mortgage relief is available from the big 4. If the risk is untenable , crash it and negotiate some deposit back. I just canceled a contract today .


10 % on 1 mill though, it’s not a small amount to negotiate I guess.

 

Buying with a long term view in Sydney you are going to be fine. Sentiments on the job security that I'm afraid is the biggest concern for everyone right now.

 

I get what you mean, but honestly we are a month in, a lot can change in the next month and then again.

No point spreading fear, better to stay prepared and not over panic.

 

Fingers crossed!

 

What about the hundreds of thousands of small and medium business owners around Australia that have just seen their livelihood disappear? They used to buy houses.

 

buying now doesn’t stack up on any measure

 

https://www.theage.com.au/business/...inancial-stocks-hammered-20200323-p54cui.html

3.07pm
Is property headed the same way as equities?
By David Scutt
Jerome Lander, portfolio manager of the Lucerne Alternative Investments Fund, believes the brutal fall in Australian equities over the past month will be replicated in the housing market in the not too distant future.

“Australian property fundamentals are dreadful; the asset class is highly leveraged, rents haven’t increased meaningfully in years and we are now unfortunately going to see widespread unemployment, business failures and lasting economic damage in response to the catastrophic economic impact of the coronavirus crisis.”

“The irrational exuberance in Australian property prices will now be exposed for all to see.”

 

Maybe they’ll buy the houses online?

 

I wish I had gone with my gut @K974

 

Sydney clearance rate was 64% last weekend - down from 74-78% in late Feb/early March.

Anecdotes from San Francisco of 1,000 furnished lets appearing on the market in the last 48 hours from the collapse of the AirBnB market.

All show downward pressure on demand.

 

did you buy ??

 

Yes unfortunately

 

you know my thoughts , but at the end of the day if you have a recession proof job ( im not sure what that is nowadays) and you can pay the mortgage and you and accept that may just have a period of negative equity but once you don’t ha to sell and happy to look at the long term it always goes up, every previous recession ive seen. so you’ll be ok.

 

I would cop a 10k or so penalty to get out now, even 20k, but not the full 10%. Hopefully we will be ok

 

Well, got a call from REA regarding this property. They are trying to bring the auction to tomorrow night. I wonder why? Too much interest or trying to get out of the property market as fast as possible.
REA still suggesting the price guide to be 1.1 - 1.2m
https://www.realestate.com.au/property/97-dartford-rd-thornleigh-nsw-2120

I personally dont think the property is worth that much, happy to pay around 950k