Highly optimistic - covid19 the catalyst for great things

Very exciting time for us as we have been seeing so many areas to invest in that we couldn't get into before. Look to expand rapidly and build our portfolio over the next year. Really just hoping the window stays open long enough so we can accumulate as much as we can while the getting is good.

I think the RE market will be volatile for awhile but with the right DD we can snag some deals.

Have had properties accepting a 20% lower offer than asking price in markets we know will recover. Exciting times indeed!

 

I got a price on a new car a couple of months ago at $42,000. Same car now $35,000 from the same dealer.
Just another opportunity in this environment.
Mmm....think I'll wait till next month.

 

The big question is:- how much cash is enough?
$10,000?
$100,000?
$1M?

 

Enough is often not enough for most
The smart move is to keep a buffer
Rather than rushing out spending everything

 

Not buying
Not tempted atm

I see more downside to come

 

I am thinking that $1M might be enough.

Do you have a spare $990,000 you can gift me?

 

i know someone who has lost $600k, you will need nerves of steel in this market, at least some can laugh about it .....sort of

 

I did my EoQ calculations today.

Our Super is down 17.0% for the Quarter and down 8.6% YoY.

Our Net Worth is down 7.4% for the Quarter and down 2.8% YoY.

Some people are saying this is the “end of the world”.

I was expecting the end of the world to be a lot worst than this .

 

Early days ol chap... early days...

When it's all over, well celebrate over a could dozen of your finest Shiraz . Your treat.

 

I will be surprised/amazed if our Super is down a further 8.6% In 12 months time and our Net Worth is down a further 2.8%.

I hope they lift the hoarding restrictions by then .

 

thats good, not that bad

Does it impact on yields. If it does not it wont matter too much

 

You are partly insulated being retired, for many business owners and employees it’s net worth losses plus much so much more. It will make previous recessions look like blips.

 

I think in 12 months time we will have perhaps some idea on the impact?

 

Interest earned - has been crap for some time already.

Dividends - sure to take a serious hit (shares in SMSF) but have serious cash buffers (can pay multiple year pension payments, even if dividends go to zero).

Rent - property portfolio is cashflow positive (even when I include depreciation). Possible that our tenants might not pay rent due to financial hardship. Only change so far is that one tenant yesterday paid 4 months rent in advance (and that IP is our highest weekly rent). Should the poo hit the fan, then we have serious cash buffer outside Super as well.

We are on the wrong side of 60 - for us, COVID-19 is more of a health crisis than a financial crisis.

 

Being retired with serious cash buffers takes away some of the stress.

I was a business owner during the AIDS pandemic, the swine flu and the bird flu. So, I have experienced the stress business owners are currently experiencing, albeit not as serious as COVID-19.

TBH, those previous experiences heavily influenced our risk management strategies ever since which has put us in a good place for today’s pandemic.

I consider ourselves very lucky.

 

If you have $30m debt and $5m annual lease obligations, and a bunch of redundancy claims against your businesses, then you might as well file for bankruptcy with $1m cash.

 

...........and for longer than most people think.

 

"Bankers optimistic" Newspaper headline quote from 1931. Depression ended up having 11 years left to run.

Stacking cash for now.

 

Yes.... its really about survival atm

anyone looking at investing their hard earned money in any market today needs to see a shrink. I know a good one

 

And according to the latest news from Scomo , this is going to last at least 6 months with lock downs in place, its barely started yet.
In other news the national cabinet is looking at a possible Jobkeeper solution for commercial property landlords,as they get worried about a collapse in commercial property prices around Australia
So much debt everywhere and it sounds like Scomo will have to bail out the entire country that has binged on Debt.