Aren’t we living in incredible times!
It may appear we are on a downward spiral as each news flash drives our emotions darker and deeper.
As a human being, let alone an investor is an incredibly difficult time.
Many of us have momentarily lost our rudder, our direction, clarity and certainty and I suggest it will get worse before it gets better.
I am not ignorant enough, nor arrogant enough to suggest I know what happens next, the truth is nobody is.
There is no way to determine how long this will last and the severity of the situation.
Now more than ever, it is important to remained focus and stay the course, things will turn and get better.
In one sense, these are unprecedented times, in a different way, they may not be.
Here are my thoughts;
At this very moment in time, this is a health crisis and not a financial crisis.
There is no doubt it could easily turn into a financial crisis with increasing jobs losses nationwide.
But the Government is doing everything in its power to prevent such a catastrophe, by taking important measures.
The ability for each of us to keep our heads above water during this time will be a key factor for the recovery period.
Leading economists are suggesting a much quicker recovery than previous financial and economic disasters, if we can keep the economy moving.
As of last night, the property industry has been in focus with the next stage of lockdowns.
No longer can open homes be advertised or Auctions attended.
There is still the ability to have private inspections and many Agents are pivoting successfully to online inspection as well as online Actions.
The suggestion that everything will shut down is not possible… at this stage.
People suggest it would be a disaster if the industry shut down for anywhere from 2 to 6 weeks.
They suggest agents, brokers and solicitors won’t be able to conduct business and there will be a crash in our house prices.
This does not concern me, remember the property industry pretty much shuts down over Christmas for a month or two every year and then picks up from where it left off.
If anything, this will drive change and strengthen our industry in medium term.
Anyone who is sitting in front of news bulletins and social media news each and every day needs to simply ‘turn off’.
The media provide an important service to our community, but above and beyond that, they are reporting everything from and economic meltdown to a crash in house prices.
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- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
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- Also read:Heat comes out of the housing market as values across Melbourne dip and Sydney slows | Corelogic Home Value Index
- Also read:Sydney property market forecast for 2024
These attention seeking headlines have little substance.
Yesterday a journalist had the headline of property prices dropping by 20% according to leading economists.
In the article there was not one mention or quote from an economist suggesting anywhere near that amount.
A few had suggested prices may fall, but none by that amount.
Cheap journalism and dare I say it FAKE NEWS.
What’s the old saying… a picture paints a thousand words.
Yes, this may be unprecedented in a sense, but we will get through this and the market will recover.
As it has done in the past, there will be a flight to blue chip, quality assets like bricks and mortar.
In each previous downturn, residential property has been the benefactor, with prices moving past the previous peak.
This will turn around.
I know many investors are holding off, trying to time the market, I have some bad news for them – so is everyone else!
While it is normal to want to see how things play out, at some stage, when you are ready you need to keep moving forward.
Don’t make longer term decisions based on the last 30 seconds of news.
In one way we are living in unprecedented times.
In other ways we are not and the world will move on again as we have in past crisis.
The danger here will be if the situation moves from health crisis to financial crisis.
The Government is doing all it reasonably can but at some stage there is a very real risk it could.
But, don’t believe the click bait and Hype that some media outlets and certainly social media is promoting.
This too shall pass and there will no doubt be opportunities out there, as there have been in past crisis.
Can you be focussed, brave and prepared to take advantage of the next economic cycle?
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