How the Coronavirus will affect the property market
Written on the 22 March 2020 by James Cagney
The Coronavirus (COVID - 19) pandemic has turned the Australian economy on it's head. How is this going to affect the property market. Well nobody has the answer right now. We all have theories based on our priorities and bias. However, Machiavelli said that "If you have learned nothing from the past you will never be able to predict the future".
Financial history shows us over many decades that when the share market is in downfall the property market is about to show growth. The investment market follows cycles and their is a share cycle and a property cycle and there is very little that you and I can do to change this.
In the short lead up into the current Coronavirus crises the share market was in state of panic. Investors need certainty and the share markets around the world were totally unpredictable. The Australian market lost $40 billion in one day, then partly recovered the next day and declined the next. Inexperienced investors panicked and sold, whilst season investors waited like vultures for the pickings. And, I admit it - it is not a market I want to be in.
Many years ago I chose the property market for better and for worse because it does not have the same highs and lows of the share market. Only two years ago the pundants were predicting that the Sydney market would fall between 30% to 50% and Melbourne between 20% - 35%. They were wrong as the market in both these cities have already recovered. So much for the so called experts.
However, the Draconian measures the Federal and State government's have implemented because of the Coronvirus pandemic has made it impossible for anyone to predict what will happen over the next six months. Please click on the Blog I wrote about entitled "Now is the time to protect your assets" This is the most important articles you urgently need to read to ptotect your family. In this Blog I also cover what the latest announcements from Federal, State & Territory governments will do to the economy and you will be gob-smacked. Ignore reading this at your peril.
The medium to long term future is easier to predict. After the traumatic downturn in the share market over the last month investors will be looking towards safer investments. Bricks and mortar is always a good alternative. The property market will rebound and it will enjoy exponenial growth over the next few years. Then the market will turn again and the share market will come back again. If you follow the tide you will enjoy the ride. However if you paddle against the tide, because you have a preference for one or the other you will always be struggling to increase your wealth.
Now is the time to be looking at investing in property again. Please click HERE and we will send you the latest report on the HOT SPOTS around the country. Or call James Cagney on 0416 137 645 and you can have a chat about what you want.
Author: James Cagney