COVID-19: who’s going full doomsday prep on this?

@Ultra Lord in our case with our son being out of work but not in the job 12 months we'll need to look at thresholds and definition of dependent as he turns 21 end of April.

We all make choices and I've made a few that have lost me money (partly around the previous GFC), and I've made others that have put me in a solid position to weather this current crisis. We have a small mortgage on a small house, and super, and no other investments. We've had hard times and know how to knuckle down.

Those cats that invest for a living, may need to have a good think about career choice in the new economy. Not exactly sure how Porsche Seeker allowance will go down with voters though :)
 
johnny said:
You know what I'm going to do? When the bottom falls out of the housing market, I'm going to take the equity I have in my properties and purchase as many family homes at bargain basement rates and then rent them back to the people that lost them, at a premium, so they can pay off my loan. Might see if I can negative gear them to.

You can thank me later.
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My finger is poised over the buy now button! Those real estate agents want their commi$$ion$ and vendors need a hand out. I pay faster than the government too.
 
Was a little short on my house offer. Sad at not getting a house i loved, but feeling better about not buying right now!!

Guess im a leftie socialist scum. I rate happiness over money, which is not what most people do - hence i get left behind. Oh well...
 
Haakon said:
Was a little short on my house offer. Sad at not getting a house i loved, but feeling better about not buying right now!!

Guess im a leftie socialist scum. I rate happiness over money, which is not what most people do - hence i get left behind. Oh well...
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You are not a socialist. You're just sadomasochistic. I'm not sure if you have direct political representation, but for many voters the Lib/Nat coalition is a similar choice.

Bummer on missing the house though. Making dreams come true apparently feels good.
 
Haakon said:
Was a little short on my house offer. Sad at not getting a house i loved, but feeling better about not buying right now!!

Guess im a leftie socialist scum. I rate happiness over money, which is not what most people do - hence i get left behind. Oh well...
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What are you talking about? You're never happy... :)
 
So how about that crazy pandemic that is crippling the world?

I'm seeing quite a few people out on bikes they can't count.
 
johnny said:
...Socialising losses and privatising gains is obviously not a great dynamic...
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but it is modern day "capitalism". I've got no problem with propping the banks, businesses and investors up because it would be chaos if they failed, but the govt should do so by ensuring the "people" own an equivalent stake. That way we all could benefit from the gains going forward.

I might have said this before, but why give liquidity to the banks to loan to people and make a profit? Shouldn't the government lend that money out directly at either the RBA rate or at a commercial rate that then provides returns to all Australians?
 
Sethius said:
My concern is the working girl. Hows's she meant to get by on the corner poodle? Pretty high risks for our society's old profession. Extra coin for no mask? Or is that deemed roleplay?
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Friends in the stripper biz were saying business was booming until pubs and clubs shut. Higher than normal! When society crumbles all the neckbeards pay to oggle. Going out with a bang etc
 
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johnny said:
I agree to a point, and that point is my lack of knowledge around economics.

Socialising losses and privatising gains is obviously not a great dynamic, but it's one that we see the farming community enjoy whenever we have a drought or similar calamity (that's a huge simplification, but I think you get the point). That's not because we all love a farmer but because if large swathes of the farming capacity in Australia goes through shock and/or collapses, food security for the nation becomes a thing. So we'd essentially cut our noses off to spite our face if we didn't suck it up and help them out when they need it, or so the theory goes.

Would this be the same with the property market? I am a very conservative investor because I don't invest for a living but for my retirement/future/family. What about those cats who do invest as their livelihood, and there are a lot of them. What about the self-funded retirees and the folks that manage their own super with investments like these. Would the shock to the nation be greater and harder to manage than the shit sandwich of bailing out those who took risks and failed?

Genuine question as I don't know the answer. The skeptic in me assumes that it's more to do with voting behaviour but I really don't know.
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There is a big difference from the examples you gave, agriculture/farming is a productive sector and property investment isn’t. They really aren’t comparable when talking propping up/bailing out and you mentioned the points why.

When it comes to bailing out the investment property side, I reckon this will be determined by the loan books the big banks hold. At one point 40% of all westpac’s loans were interest only home loans.. Most banks have 50-70% of all loans in housing.. That’s a huge chunk of speculative leverage they are holding. If the market collapses then the banks will need to be bailed. The gov/rba/apra had already thrown the kitchen sink at the property market trying to keep prices up via interest rate cuts, loan servicability changes, interest only loan changes and the first home owner gov backed loans.. They have used their ammo and now we have this shitshow going on..
I don’t think the gov and banks can realistically protect the homeowner as well as the investor.. Working/unemployed homeowners are figuring out how they can keep their mortgaged roof over their heads for the next 6+ months and I reckon that will be the gov’s first priority. Bailed out/propped banks and gov can always take ownership of failed investment/rental properties if need to be and the service they provide continued..
So to your question, imo, I don’t think the speculative investors can physically be bailed out medium to long term.. Look to the banks and their actions for any propping up. And so far they giving a 6month break that you still have to pay back with added interest and loan term..
 
DMan said:
I think that's a very valid point Rowdy. A lot of people who cry at not being able to buy strangely aren't willing to widen their search parameters as far the ideal place they'd like to live.
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What professions/education do you have that allow you to live where ever you want and find work there?
I want to understand this perceived fludity of housing and profession that you liberals have, why do you think that people simply aren't making the right choices? Do you think its appropriate for people to move away from their friends and families in persuit of a more affordable mortgage etc?

I bet you also wonder why there isnt a sense of community any more.
 
Kerplunk said:
So to your question, imo, I don’t think the speculative investors can physically be bailed out medium to long term.. Look to the banks and their actions for any propping up. And so far they giving a 6month break that you still have to pay back with added interest and loan term..
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Totally agree the Govt cant protect everyone.
 
From a property investment group on bookface..
4d460ecd7d80c61ac47d2d4bc25a4bb2.jpg

Mmmmm.....
 
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