Would you buy now in Australia. (or wait to see the outcome of virus outbreak)

Discussion in 'Property Market Economics' started by Illusivedreams, 13th Feb, 2020.

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  1. Illusivedreams

    Illusivedreams Well-Known Member

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    So a question,

    Would you buy a property now or would you wait.

    I was talking to a few people and the question came up. Purely looking at the situation in china should we buy now or wait for dust to settle and see the true impact of the Corona Virus?

    The Equity market seems to completely ignore the Viral outbreak like its not going on at all.


    Seems the property market has not lost steam.,


    Am i the only one concerned? i can see many sectors impacted and in so i ask . Why are more people not worried?
    VS
     
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  2. Sackie

    Sackie Well-Known Member Premium Member

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    I'm not worried at all. Mark my words, in 12 months from now people will say corona virus? Ha what virus .

    And real estate will be the same old story. Those who buy well, hold for medium to longer terms or are able to add value, will do well.
     
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Personally I'm not too concerned. There are industries immediately affected at the moment due to not being to transport in/out China but the virus itself seems to be quite good at spreading but not so good at killing. Most people who have caught the virus have recovered except for the usual types who would have succumbed to influenza.

    I don't anticipate too much of a backlash on property unless they are OS Chinese owners and find that holding property in a country they no longer can get to is too much of a burden but most would ride it out.

    In 3mths times I anticipate we will know a lot more about the virus and may well have a vaccine against this strain.
     
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  4. Perthguy

    Perthguy Well-Known Member

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    If there was the right deal now, I would buy it.

    Don't ask me though. I intentionally bought in Perth in 2016 when the downturn was in full swing. A deal too good to pass up. It's turned out great!
     
  5. Codie

    Codie Well-Known Member

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    I work in the architectural sector. Resi and commercial, high rise and monumental and our company is all ready starting to get concerned on the ships being held up (we bring a lot of raw material in)

    Think of the amount of aluminium brought in from China that is facades, windows, doors, paints, cladding etc. This is just one industry and albeit a VERY large one to the Aus economy.

    So yes there is concerns. However I feel it will wash over in time and the back log will fill back up. I’m still looking to buy shortly
     
  6. Bunbury

    Bunbury Well-Known Member

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    [​IMG]

    COVID-19 doesn't and wouldn't deter me from buying in Australia.

    However, the inability of second and third tier suppliers to export out of China definitely poses a serious disruption to global manufacturing as well as construction in the short term.

     
  7. Jana

    Jana Well-Known Member

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    What is the capital gain currently from 2016 buy?
     
  8. Jana

    Jana Well-Known Member

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    I wouldn’t worry much if right deal presence... But will keep away from Sydney for a while until it comes to normal growth rate...
     
  9. Lacrim

    Lacrim Well-Known Member

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    That's for new product though. Ceteries paribus, if new supply gets choked, there'll be higher demand for established dwellings.
     
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  10. sash

    sash Well-Known Member

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    No likely...a lot of the residential products are made here.

    It is things like vanities, appliances, some flooring which is made in China.

    Personally moving away from suppliers would be a good thing. The current virus issue will hurt China as companies now look at reducing risk in their supply chains....
     
  11. Illusivedreams

    Illusivedreams Well-Known Member

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    I agree,
    I have a friend who is one of Sydney largest tile importers and distributors.
    Thy have now Doubled down on moving a large portion of supply to Italy.


    Our business is hard we attain all our stock from China.
    We are lucky we have 3 months buffer of stock but it will get tight if things dont improve.


    I think their will be shortage of supplies so it may slow down stock of new
     
  12. Fargo

    Fargo Well-Known Member

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    ? You can only buy the property you want to buy when it is on the market. There will always be a virus outbreak coming and there will be worse outbreaks than the one we have now. So does that mean you should never buy property. ?
     
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  13. Perthguy

    Perthguy Well-Known Member

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    Not much, I would say. The market has dropped a lot since then but renovations mean the property is still worth more than at purchase. The reason I like this property is that it is pulling in 5k to 6k per month as an Airbnb
     
    Last edited: 14th Feb, 2020
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  14. Sackie

    Sackie Well-Known Member Premium Member

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    Coulda just said that :p
     
  15. Sackie

    Sackie Well-Known Member Premium Member

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    That's phenomenal.
     
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  16. Codie

    Codie Well-Known Member

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    I like rambling on just as much as the next guy :)
     
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  17. Perthguy

    Perthguy Well-Known Member

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    It's good money but it's a lot of work!
     
  18. Codie

    Codie Well-Known Member

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    Sure. I’m talking about jobs. if it slows the whole construction industry to a halt because we can’t bring material in, all those cranes on the city skyline stop working, people are laid off. Confidence is gone again
     
  19. Sackie

    Sackie Well-Known Member Premium Member

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    In RE I'm yet to make good money without a decent effort mate. Those who say otherwise are most likely BSing.
     
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  20. sash

    sash Well-Known Member

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    This is good..I personally want to see company diversify away from China....some companies have started manufacturing in places like Thailand and Vietnam. Besides China is quite expensive now from a labor perspective.