Interest rate drop?

What is happening with the Coruna Virus is the Black Swan or shock to the system ...this will most probably affect the global share markets for some time and create volatility. The RBAs cuts will be pretty useless without fiscal stimulation by the government. I have no faith in the current Scomo goverment.....they have done nothing for the economy other than spin....they need to spend money on infrastructure not hand out tax cuts as it will not hit the economy as people stop spending.

I for one see a silver lining:

1. Lower buy in prices for shares/ETFs/LICs
2. Property prices in the regions may rise further...

 

I also believe Perth is now showing very positive signs..... fingers crossed. About bloody time

Rental market is now strong. Amazing whats happening here

 

If the virus is slowed or is contained quickly maybe, but why wouldn't house prices drop along with share market in the near term? If shares are dropping due to major business disruption and confidence then why wouldn't that move to property?

 

Apparently stimulus package to be announced prior to May budget????

 

The speed of liquidating/ adding is the differential. A few clicks whilst under panic crystallises shares into safety of cash. Takes months to do the same for houses hence its insulated from knee jerk volatility.

 

Fed drop rates 50points last night giving what the market wanted, but still market was not happy despite the big run up Monday night. Drops of almost 3% across all three indexes. More carnage on ASX today, i believe GDP and other numbers we see out of regions worldwide this week for feb will be really bad.

 

If inspections and offers fall due the coronavirus, a lot of people simply wont sell. Volumes will fall. Price stats will look very strange, those who have to sell might have to sell cheap.

However, a couple of people who have to sell cheaply doesnt mean much to the wider market. This is different from say an unemployment driven increase in forced sellers. Even then it depends on volume. People lose jobs even when not in recession.

Good time to go bargain hunting.

 

I hope that’s right, time will tell

 

Yes but Brisbane, Melbourne and Sydney as they have large foreign populations.....other market will tick along noicely.

 

You could be right..... markets outside of the East Coast do very well..and large regionals.... in particular markets tied to Agriculture.

 

I believe regionals are a lot more volatile than large cities this time around owing to their over-reliance on tourism, mining and local-migration, all of which seem to be taking a hit with this virus.

 

Residential property won't respond do the disruption of the virus, unless it leads to impacts on the unemployment rate. Residential real estate is all about credit availability, income growth and demographics.

Commercial property on the other hand will likely be impacted.

 

No they are not....so long as they are tied to agriculture....and have proximity to Melbourne and Sydney.

I was in Geelong/Ballarat over the weekend...no impact there...things are going well. Lots of government based jobs....and infrastructure work at the moment.

 

Coronavirus: Tasmanian man breaks self-isolation to visit Launceston Woolworths | 7NEWS.com.au

 

I know..... wish me luck

 

who owns Quilton? i wanna be a shareholder!

 

Areas that have an over-reliance on tourism , especially in the airbnb market will see a lot more properties back on as traditional rentals, or if the numbers dont add up they will possibly hit the for sale market, especially in areas like Queensland and even possibly Hobart.
Owners of apartments in Sydney and Melbourne that are used either as student accommodation or short term rentals might also struggle this year as the bottom falls out of the market, many companies are deferring business travel for their employees, with conferences at hotels to also take a big hit, for many hotels this is where the money is made.

 

Run a Melb CBD airbnb and booked out till October. Strict cancellation policy so if guests cancel I still get paid. Haven’t had any cancel so far regardless. Don’t think this sensationalised fear will last for longer than a few months anyway. Besides interstate travel not as affected (I personally fly interstate for business every week, planes, hotels are full, can’t tell a difference). International travelers perhaps.

It terms of the major regionals, tourism and mining has very little to do with the current bull market. Take Ballarat - it’s fundamentals are proximity to Melbourne, good schools, parks, lifestyle, rising employment, etc. The major regionals are going through a fundamental shift as the capitals get ‘full’ and too pricey for most people. Not the usual follow on bull market from the capital cities

 

This just about sums up how well Australian governments will contain the virus spread - completely inadequately. Implementing tokenistic containment 'measures' and just pray that health systems can keep up with the exploding case numbers until a vaccine is available.
China is in absolute lockdown. Millions of (uninfected) people are locked down at home via police enforcement, apartment buildings are physically sealed up, most businesses are closed and the economy is effectively shut down. And only now they are gradually containing the virus. Aussie governments don't have the bottle to do half of that.

When this is all said and done, and thousands of Australians have died, there will be a serious rethink of how complacent and timid to react we are in situations like this, with stupid measures like "self isolation" which obviously don't work.