An emergency. Then crisis. Now a pandemic?
Falling confidence. Market correction.
Talk of recession. Social distancing. Cancelled events. Closed borders. The list goes on and on.
No good news anywhere.
There is little doubt that it is serious.
And I don’t want to make light of the coronavirus (COVID-19) but I am of the opinion - and it is just my opinion after all - that its impact will ultimately be temporary.
In the words of the infamous allegory; this too will pass.
The economy was slowing down in earnest during the second half of 2019.
And the recent two black swan events – local bushfires and now the coronavirus – have added further turbulence.
However, with RBA action, government incentives and now some meaningful endeavours - and with a little bit of self-control on our part too - hopefully, the second half of calendar 2020 should be better, economically, than the first half and 2021 should be stronger than 2020.
The long-term view outsmarts short-term thinking.
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Things that really matter when it comes to the housing market include demographics, work trends, settlement patterns, finance, taxation, regulations, compliance, affordability, and importantly supply and demand.
None of these fundamentals are likely to be substantially altered by the current virus and the ensuing fear; subsequent machinations and changing confidence.
And again, in my opinion, residential property is unlikely to be affected anywhere near as much as other property classes.
People will always need somewhere to live, and homes are the true “safe haven” in the current environment.
This sentiment may also loiter after this emergency passes.
It may even strengthen the longer the virus remains unrestrained.
It is always challenging to invest when the rest of the market is running around beheaded and worrying about the end of the world.
People much smarter and wealthier than me say that it is precisely these conditions that present the best opportunities.
So, if you have a strategy, you know what you want to do and why.
In short, if you have a long-term plan, then now is an opportune time to do something about it.