Second Wave sends Clearance rate down to just 59.4%

interesting about jobseeker supporting $1m loan

I agree there will be some markets that will fair better than others

In Perth we have got $20k incentive from state government to build and $10k FHB grant this is impacting in a positive way and we are seeing this FHB market doing very well

 

The economy was heading south prior to coronavirus hence there are structural reasons why I believe the Australian economy would long-term do badly but right now, I don't see the short-term situation being worse than most other developed countries. On the contrary, it is likely better.

Those structural issues are many but include dependency on China, overseas (particularly Chinese) students, tourists and an excessive allocation into property speculation. It's a bit rich to be lectured on how badly the country has failed to diversify when property investors have been sucking at the Govt teat for the last couple of decades and the economy has been primarily about supporting policies affecting property prices at the expense of much else.

The USA is a huge contributor into the Australian economy so you cannot remove the influence and degradation of the largest global economy and expect your own economy to flourish. Being critical is not helpful in this current situation but this is now a time to do that painful re-structuring so the country is better prepared.

The economic and health pain caused by coronavirus is global and it's a dream if you think Australia could have came out the other side unscathed.

 

agree

 

Interesting comments from RBA deputy today

"Nor do I see any issue at all with the capacity of the Government to repay the bonds it has issued. Firstly, even with the increased issuance to fund the fiscal stimulus, the stock of government debt relative to the size of the Australian economy remains low."

Full speech here, worth a read:

https://www.rba.gov.au/speeches/2020/sp-dg-2020-06-30.html

 

He is doing what he has been doing for years , even well before COVID- imploring the clowns in Canberra who are supposed to be good with money, to spend big on infrastructure. Start with Water ( Bradfield Scheme or a modern, better version of it) so you can drought proof the whole joint permanently. Add High Speed Rail and value capture the land and then create special economic zones so we can recommence manufacturing in these new locations, centred around 5 or 6 regionals with direct fast access to SYD and MEL. It gets new industries going. It creates a genuine food bowl for the world. It allows for rapid population growth without further congesting SYD and MEL .... It is visionary...and that's why it will all fall on deaf ears.

 

If only the vested interests realised how much money could be made from this...

 

Not too late .. there is a Snowy 2.0 project coming and many Jobs and Growth ...in the wings

 

They arent interested in anything that doesn't deliver votes in this election cycle.

 

Indeed! Let me just speak to my broker. Perhaps he can add a few zeros onto my payslips

 

COVID19 cases have jumped to 108 today.

Postcodes 3031 and 3051 will go into lockdown tonight.

 

If you have a look at rents for say 3051 going into lockdown tonight, three bedroom houses are down 24.7 percent in the last quarter. (All houses are down 18.1% for the quarter).

The lockdown is a massacre for the property investor and cash flow.

 

With regards to the Melbourne property market, the North and West areas may take a reputation battering with other regions benefiting going into 2021. I’m invested in the North and West so I say this with disappointment.

 

Keep telling yourself this, that’s what the majority are doing.

 

Definately a stigma, but imo I would be far more concerned about the impact on jobs will play in Melb. Second lockdown could be the nail in the coffin for many small businesses

 

For sure, with 5000 people losing their jobs every week
$83 million per day to fund this fiasco

 

Quality stock in market is very low at the moment. With government handout people can easily pay the loan and interest rate is low too.

 

I doubt a second lockdown is necessary as the spread is located to specific areas. Much of the residential, commercial and significant manufacturing areas are located in the South-East and this area is mostly unaffected.