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.

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Wednesday, 8 August 2012

Where is the best Australian city to invest in property TODAY? (latest RBA figures just released)

Well, the chart pack released by the Reserve Bank today tells the story, and the answer is Sydney.

While Perth and more recently Melbourne have seen tremendous spikes in dwelling price growth, other cities, most notably Sydney and to some extent Brisbane, have not.

Recent data (including housing finance approvals showing investors returning to the market and increasing auction clearance rates) suggests to me that Sydney will be the 'next to go'.

Low vacancy rates and rapidly rising rents in certain parts of Perth may also make a compelling case for investment, as does the total lack of dwelling price growth in Brisbane over half a decade.

But for my money, Sydney is looking like the place to be at the moment.

Australia's largest city has seen only moderate growth since the first quarter of 2004, while household incomes growing very strongly and a recent easing of interest rates have improved affordability since 8.5 years ago.

Historically, Sydney has been the most expensive city in Australia by a very significant margin, but that is not the case presently (note how close the median prices of Melbourne and Perth - and even Canberra or Darwin - are to those of Sydney today).

As always, I would add a caveat to this and restrict investment to suburbs with limited supply, and look for dwelling types which are in the highest demand for the chosen suburb.

To me, that means 2 bedroom apartments in prime-location suburbs with superb transport access for the city.

Dwelling Prices graph