Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

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.

Friday, 17 August 2012

Australian housing affordability improves over past year

Interesting article from MacroBusiness here, which shows that Australian housing affordability has improved on a year earlier.

The Economist's measure of house prices - with reference to deviation of prices from long-term average rents and disposable incomes per capita - has scored Australia particularly high for some years now (which you would indeed expect given the very strong rise in house prices over time in Australia).

The Economist still lists Australia as significantly overvalued though variously now less so on its measurement criteria than Canada, Hong Kong, France, Singapore, Netherlands, New Zealand and Belgium.

It was suggested by our own Reserve Bank yesterday that property prices are unlikely to fall significantly with Australia's unemployment level so low. Mortgage rates too remain at historically low levels with the cash rate on hold at just 3.50% which brings affordability to the party.

As is usually the case, house price movements have not been uniform across Australia, with Sydney lagging siginificantly over the last decade.

Personally, I would look towards apartments rather than houses for future growth in the capital cities, though houses can show great performance in some areas too.