Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

"Pete's daily analysis is unputdownable" - Dr. Chris Caton, Chief Economist, BT Financial.

Invest in Sydney/Brisbane property markets, or for media/public speaking requests, email pete@allenwargent.com

Friday, 22 June 2012

Property Observer: House prices falling; unit prices more resilient

As I discussed at some length here and in other posts. Property Observer discusses the same topic in an article today by Cameron Kusher from RP Data here.

Across each major capital city, the unit market has been more resilient to falling values over the past year compared with detached houses. This would seem to suggest that affordability barriers in the market are encouraging home buyers to look for more affordable housing options such as units and townhouses.

The reasons for this trend emerging then: lack of affordability of houses, stronger rental yield from units for investors ,and units are becoming increasingly 'acceptable' for younger generations to live in - there is no longer a stigma attached to living in a flat rather than a house.

Units can also be located in far more convenient locations: close to work, close to train stations, close to shops and restaurants.

I'm expecting the trend towards unit-dwelling to continue over the long term as the population continues to grow (as confirmed in the Census data yesterday).

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An unhappy 24 hours for those who take a short-term view of their stock market investments with the Dow Jones down 2% or 250 points as growth expectations are moderated.

The possible solutions, as always, are the same. Taking a longer-term view, investing in index funds for the long haul or, better, a portfolio of the highest quality blue chip shares.

Try to 'switch off' the stock market noise, ignore the day to day gyrations of the market, and remember that over the long term, shares have been a very strong growth asset.

Go and mow the lawn instead of watching every tick of the stock market chart!