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Has COVID-19 crashed the 'Great Australian Dream'?

Property, the great Australian investment vehicle is under pressure like never before. Will it recover, or has it changed forever?
By · 20 Apr 2020
By ·
20 Apr 2020
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Over the years property, residential and commercial alike, has continued to enjoy a key place in many investor portfolios.

And, while property has faced periods of rocky growth before, the current COVID-19 crisis may be the perfect storm. With commercial and residential tenants requesting rental holidays, to the drop in residential auction clearance numbers, this has led many investors to question where property investments may go to from here.

This week on From the Bunker, we looked at the most recent economic data available, and along with your questions, we tried to answer where property may be heading.

This episode about property was that popular that we are following up with Part 2 this week on From the Bunker.

So join Evan Lucas and I, on Friday, April 24, at 10:30 am AEST, where we will discuss Part 2 of the effect of COVID-19 on one of Australia's most cherished assets: property.

Register here to attend Part 2 of the webinar.

You can view a recording of the previous webinar here:

 

 

Questions:

(Use the Chapter feature in the video above to jump to the question)

Vimeo Chapter example

2:54 Unlisted Property Trusts

7:16 How is this time different?

15:42 Wait 3 months for the price to fall?

18:27 Any Perth drops?

22:39 Inner/Outer Suburbs

24:54 Will rent holidays discourage further investment?

28:44 Different for Foreign Investors?

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Frequently Asked Questions about this Article…

The COVID-19 crisis has created a perfect storm for the Australian property market, with both residential and commercial sectors facing challenges such as rental holidays and a drop in auction clearance rates. This has led many investors to question the future of property investments.

Unlisted property trusts are investment vehicles that pool money from investors to purchase property assets. During the COVID-19 crisis, these trusts may face challenges due to decreased rental income and valuation uncertainties, impacting investor returns.

Yes, the current downturn is unique due to the global nature of the COVID-19 pandemic, which has caused widespread economic disruption and uncertainty, affecting property markets in ways not seen in previous downturns.

While some investors may choose to wait for prices to potentially fall further, it's important to consider the long-term value and stability of property investments, as well as individual financial circumstances and market conditions.

The impact of COVID-19 on property prices can vary by region. Investors should monitor local market trends and economic data to understand how Perth's property market is being affected specifically.

Inner and outer suburbs may experience different impacts due to varying demand, population density, and economic factors. Investors should consider these differences when evaluating property investments during the pandemic.

Rental holidays, which provide temporary relief to tenants, may pose challenges for landlords and investors by reducing immediate rental income. However, they are also a necessary response to the current economic situation and may not deter long-term investment.

Foreign investors may face additional challenges such as travel restrictions and changes in foreign investment regulations, which can affect their ability to invest in the Australian property market during the COVID-19 crisis.