Don't Buy Property in 2020

Even if the market recovers he’ll just break even.

 

Do you mean the equity market?

What about if gold has a massive run which is typical in these times? He has a large exposure to gold.

Again, everything is liquidating right now, but when that stops, certain assets will run, and others wont. And we can't just look at the equity market to see where the bloodletting is.

 

Yea golds been my worst trade these 4 weeks. I have around 8% of my portfolio in gold equities. So if he has a lot of gold he could stage a come back. Prob the only thing that’ll bounce and maybe 10 yr bonds which have been smashed too

 

In 2008, gold got smashed along with everything else. Then when the margin calls were met and dust had settled, gold went on a tear until 2011. I expect the same thing.

I know it is a property forum, so the takeaway is - flight to physical assets during a currency debasement!

 

Pretty much my strategy. Holding plenty of precious metals, gold/silver mining stocks and property.

 

Yes, in truth, I can't help but feel that the virus is a trojan horse for the central banks to go nuclear, and that is why it feels like a huge over reaction.

The virus is real and this isn't a hoax or anything. But the repo market blew up in September last year, and they knew that that the markets were teetering back then. In a dark place, i sometime feel that this is a pretense to deal with a pre-existing economic problem. Will never know, and this is not a forum for this sort of talk.

 

2 weeks later, and nobody believes this now.

 

Not many can get loans with unemployment at 20%...

 

Cash is King until the government decide to change 10 for 1 as it happened in Vietnam several times or India, or ...
Gold and Diamond were and will still be King, then a roof over head, and maybe a farm ...

 

well in theory 80% still can?!?

In reality though if you're in a high risk category they will likely find a reason to knock back your application anyway, and it's the 20% that are forced to sell that will drag prices lower.

 

No doubt the ones with no jobs are out of the market for a while. There are some who are in stable positions however and still looking for a home. To them this is the moment to jump without competition (I was told this by a buyer last night). Even some investors still want to move forward but only if they are confident of their own income and the numbers make sense.

 

I think his time frame was "over the next few years". Two weeks is too early to know where the flight to safety will go.

My suspicion is that the flight to cash will be temporary once the inflation becomes apparent. You could easily get a flight into real estate as a safe haven play for those seeking (a) tangible assets and (b) any yield.

 

No they're not.

 

Talking cash
AUD 61. Jumped a tad .......but I can see it hitting 50-55 again

Cash is good better if its USD

 

I'm an investor and moving forward with my property investment plans and currently getting finance to invest in equities.

Some investors will move forward with their investment plans but only if they are confident of their own income and the numbers make sense. I am one of them.

 

When do you think, looking stronger sadly at the moment?

 

no idea
Its going to be a roller coaster

next spat of bad news from US

i think approval of stimulus package was the impetus for US stock rally and we follow from this

perhaps announcement of US job numbers??? AUD may take another hit??

crazy times, its hard to know

 

i know you are holding USD, just playing devil
what if the coronavirus run too much in the US, while it is contained in AU and CN, will USD go down?

 

it would need to be drop significantly

 

Yes. Some are.

I'm not trying to convince you that you should. I am just telling you I have several on my books right now whose instructions are to proceed.