Liberal MP John Alexander: Australia faces worse house price crash in 130 years

Discussion in 'Property Market Economics' started by Peter2013, 13th Jun, 2020.

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  1. Property Baron

    Property Baron Well-Known Member

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    If they do drop 15% and remain that way for 10years is there any point in people keeping there negative geared investment properties? or do they need to sell now
     
    Property Baron, 14th Jun, 2020
    #41
  2. bashworth

    bashworth Well-Known Member

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    Mortgage stress with
    • Banks payment holiday over.
    • Money drawn down from super run out.
    • Gov't payments stopped.
    and things won't be back to 'normal'.
     
    bashworth, 14th Jun, 2020
    #42
  3. MTR

    MTR Well-Known Member

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    I am so happy to hear this. We want it all to go back to normal

    When borders open lets just travel in Australia support our small business’ they need this, many still recovering after bush fires too
     
    MTR, 14th Jun, 2020
    #43
    albanga and wylie like this.
  4. wylie

    wylie Moderator Staff Member

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    I've heard anecdotally that gym equipment has been selling like hotcakes. My own son and his partner have bought themselves weights and other gear and have set up their own gym in a spare bedroom.

    I doubt they will venture back into the gym, pay a membership, drive to get there, drive home, when the alternative is to wander downstairs any time they wish to, between meetings, any time.

    I have equipment at home where I used to occasionally go to a gym. I much prefer being at home. Some who enjoy the social side of being in a gym will return.
     
    wylie, 14th Jun, 2020
    #44
    Anchor likes this.
  5. wylie

    wylie Moderator Staff Member

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    This is what we will do. More Australian travel. Until I'm very confident, there's no way I'll get on a plane (planes) for 30 hours. I'd consider a short plane trip within Australia, with mask and sanitiser at the ready, once I feel safe enough.
     
    wylie, 14th Jun, 2020
    #45
    MTR likes this.
  6. DueDiligence

    DueDiligence Well-Known Member

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    JobKeeper and pent up demand W recovery.
     
    DueDiligence, 14th Jun, 2020
    #46
  7. Shogun

    Shogun Well-Known Member

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    Just like Gym equipment and people realising the savings of training at home.

    Coffee machines were a big seller. After 50 cent cups at home will people still go out for $5 coffees?
     
    Shogun, 14th Jun, 2020
    #47
  8. MTR

    MTR Well-Known Member

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    Maybe.

    I used to have a house cleaner every week till
    Corona hit. I have decided I will probably not get cleaners back
     
    MTR, 14th Jun, 2020
    #48
  9. DueDiligence

    DueDiligence Well-Known Member

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    Depends on their strategy but why hold a negative cashflow asset that doesn’t have any capital gain.
     
    DueDiligence, 14th Jun, 2020
    #49
    Property Baron likes this.
  10. TMNT

    TMNT Well-Known Member

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    as soon as lock down hit, I brushed the dust off my equipment,

    I then went to look for a few 5kg-10kg weight plates on gumtree,
    these normally sell for $10-$20kg new at rebel

    people were advertising rusted ones for $40 each!

    every one I enquired on had sold out too

    then rebel sold out
     
    TMNT, 14th Jun, 2020
    #50
  11. Property Baron

    Property Baron Well-Known Member

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    So your prediction of this happening means so many investment propertys will need to be sold, who will buy them?
     
    Property Baron, 14th Jun, 2020
    #51
  12. DueDiligence

    DueDiligence Well-Known Member

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    Anyone at the right price.
     
    DueDiligence, 14th Jun, 2020
    #52
  13. Property Baron

    Property Baron Well-Known Member

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    Why are they not already on the market? If it were me and I was sure the sky was falling down in 3months I'd have the place on the market today and hopefully get as much as I could. Im not seeing an influx of investment type properties being listed for sale
     
    Property Baron, 14th Jun, 2020
    #53
  14. DueDiligence

    DueDiligence Well-Known Member

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    Recency bias. They’re also not on the market probably because of the massive IO can kicking exercise.

    Smart money exited early 2017, this is mostly (at guess) mum and dads, boomers and rich dad poor dad readers that are the bag holders.

    Add a dash of Hope , and also denial too and a lack of foreclosure Appetite and you’ve got a lack of price discovery in the midst of what would otherwise be a panic sell.
     
    Last edited: 14th Jun, 2020
    DueDiligence, 14th Jun, 2020
    #54
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