Oh NO! Not another podcast about the corona virus and a recession | PROPERTY INSIDERS

Yes another podcast about the coronavirus, but you really need to listen to this one. 

What started as a little cold for our economy has progressed to the flu and now sounds like it could be a dose of economic pneumonia.

Look where we are today…

Dwindling confidence, a major stock market crash, talk of recession, workplaces closing, major events cancelled, social distancing. 

What next? 

Well…panic I guess

There is little doubt that it is serious.

And I don’t want to make light of COVID-19  based on my view, having been involved in the property market for over 45 years, and those of Dr Andrew Wilson who I’m going to have a chat with today, we believe the impact of this on our property market will ultimately be temporary.

Now this may be a little different to what some others are suggesting, but please listen to today’s show as I believe I will be able to bring some calm to the storm.

Remember …this too shall pass.

There is no doubt that the virus will cause illness is some people and tragically even kill others.

And even though I’m going to be concentrating on property today, I don’t want people to think that I don’t care about other people, their health and those in need.

I’m also concerned for those whose jobs are at risk, and who may suffer from isolation or mental health issues from restricted social exposure.

But I’m not qualified to discuss those matters, so listen as I first give some of my views and then chat with Dr Andrew Wilson.

We will explain how worried you should really be, the possibility of Australia going into recession and what that could mean for you, how does downturn may compare with other downturns that we have experienced, and also the perfect storm that could come out at the other end.

Now the show was recorded in the third week of March, a few days before it is going live on my podcast, and I’m sure a number of things have changed between now when I’m talking to you when I’m recording the show and when you officially listen to it.

However, the message I’m trying to get across to you today is not really be time sensitive.

You see…the main messages I want to get across today is that taking a long-term perspective always outsmarts short-term reactive thinking.

And from mine, it’s always property fundamentals that really matter and drive our markets in the long term.

Things like demographics, supply and demand, affordability, availability finance, and local economic trends.

We all know the old saying, being fearful when others are greedy and be greedy when others are fearful, but it’s always difficult to invest when everyone else is running around thinking the world is coming to an end.

But now that I have invested in close to 8 cycles, I have found exactly these conditions the present the best opportunity. 

What we are currently experiencing is like a terrorist attack which will deliver a short sharp blow to our economy rather than experiencing a long drawn out war. 

Yes our economy fall into recession, but this will be different to previous recessions as we will explain in the podcast, and the economy is likely to rebound in the second half of this year at which time we are likely to be experiencing a perfect storm for property.

Our government, and the governments around the world have learned a lot about handling monetary and fiscal policy is during economic downturn’s and they are hellbent on making this downturn as painless as possible.

Sure unemployment will rise little bit, probably to 7%, but that still means at 93% of people will have a job.

And if the government lives up to its promises, it’s stimulus packages will grease the wheels of industry and keep more of us employed.

One of the major lessons I have learnt from previous downturns is the importance of the taking a long-term perspective which always outsmarts short-term reactive thinking.

And from mine, it’s always property fundamentals that really matter and drive our markets in the long term.

Things like demographics, supply and demand, affordability, availability finance, and local economic trends.

We all know the old saying, being fearful when others are greedy and be greedy when others are fearful, but it’s normal human nature to find it difficult to buy your new home or invest when everyone else is running around thinking the world is coming to an end.

But now that I have invested in close to 8 cycles, I have found that it is exactly these conditions the present the best opportunity. 

So now is the time to get prepared to take advantage of the opportunities that the market will offer.

It is likely that human nature will cause many would be advised to sit on the sidelines for a little while until things become more clear, which means that sellers will be more amenable to accepting offers rather than holding out for a top price. 

Remember don’t make long-term decisions like buying a home or an investment property based on the last 30 minutes of news.

There is no doubt there will be opportunities in the market for those who are willing to go against the crowd and when they look back in a year’s time and definitely in 5 or 10 years’ time they will remember the unprecedented events of 2020 as a great buying opportunities for property.

Links and Resources:

Dr. Andrew Wilson, chief economist of MyHousingMarket.com.au 

In turbulent times like this why not get the team at Metropole on your side – find out more here

SHow notes plus more here: Oh NO! Not another podcast about the corona virus and a recession | PROPERTY INSIDERS

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