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

Tuesday, 27 November 2012

The 8 financial stages of relationships

Today I’ll take a -hearted look at the 8 financial stages of relationships, starting with…
1 Singledom
Let’s face it, for most of us singledom is a time of money being earned and money promptly being spent. It would of course be great if you could put some money aside for the future, and some do indeed manage to do this. But this can be undeniably very difficult, particularly as people tend to like to go out and socialise. If the socialising goes well, and you are the dating type, then next up comes…
2 Courting
Thankfully, I haven’t had to do this stage for a few years now, as it can be darned costly. People often want to create a great early impression so Shangri-La, Bennelong and Louis Vuitton may well be the order of the day. Thankfully, the urge to spend like Elton John on vacation doesn’t usually last too long. At some point you tend to find out if the expensive gifts worked and progress to…
3 Cohabiting
8 in 10 couples now cohabit before marriage as compared to just over half of couples 20 years ago. For many, this represents the stage of greatest affluence in their lives. Two incomes and few outgoings can lead a strong monthly cash-flow.
This is a great time to start saving and then investing in a portfolio of shares as you might have the available cash to do so, and in property because lenders love double-income households. Of course, the trap here is that the two incomes are instead spent on having two very flash cars and regular luxurious holidays! Easily done, after all.
If you can still stand the sight of each other after a year or three, the ability to save and invest then often becomes balanced off with the need to save for…
4 Wedding-honeymooning
A wedding used to be a time of giving couples a great start in life. Today is a little different as the average age of a marrying couple is significantly higher than was once the case…but what do you think the average wedding costs in Australia today? Well, that depends on which source you consult, but somewhere between $36,000 and $48,500 is the average.
According to the Australian Bureau of Statistics (ABS), the average age of marriage in 1990 was just 26.5 years of age for men and 24.3! By 2010, these numbers had increased to 29.6 years for men and 27.9 years for women. If you’ve made this far, eventually you will probably run out of things to talk about and thus are faced with…
5 Parenting
According to the ABS, Australia’s total fertility rate barely moved between 1990 and 2010 (1.90 babies per woman in 1990, and about the same in 2010), but the age at which women have their first baby has changed.
In 1990, the median age of first-time mothers was 27.5 years and by 2010, this had increased to 28.9 years. Since 2000, women aged 30-34 years have continued to record the highest fertility rate of all age groups. Even more surprisingly since 2005 the fertility rate for women aged 35-39 years exceeded that of women aged 20-24 years.
The implication of this is that couples tend to have longer as DINKs (two incomes, no kids) before having children and therefore have more opportunity to build a portfolio of assets before the two incomes might become one and two cars are needed for work and school-runs. Parenting takes a long time – a couple of decades, no less! – before you are finally free to the joys of…
6 Empty-nesting
Refers to the period after the offspring have flown the nest – the kids have gone off to Uni or off to work. It can take longer to get rid of the kids these days due to houses being expensive and it being hard for youngsters to save deposits. Empty-nesters are often to be found on cruise ships, an experience which hopefully does not lead to…
7 Divorcing
This stage may or may not apply of course!  According to the ABS, although more divorces were granted in 2010 (50,200) than in 1990 (42,600), the crude divorce rate was relatively lower at 2.3 divorces per 1,000 of the population, down from 2.5. The median age for divorcing in 2010 was 44 for men and 41 for women, with separation on average occurring a few years earlier than that.
Divorces tend not be great for personal finances. Finally, after all the trials and tribulations you have reached the grand old stage of…
8 Retiring
Usually a good financial plan would be to aim to own a property outright by the time you retire as you would therefore not have rent or a mortgage to pay. At this stage of your life it may be beneficial to be in a couple as a single person’s Age Pension at around $385 per week, is obviously far less than the likely equivalent for a couple.
A better financial plan, of course, would be to build a portfolio of assets which generate you the income so you don’t need the Age Pension at all.