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

Sunday, 19 May 2013

Home loan war hots up

I've written previously that we can expect mortgage rates to fall at this stage in the cycle as competition for market share hots up.

And mortgages are getting really very cheap now which will kick along the property market.

Here's SMH today:

"Westpac has fired the latest salvo in the fixed-rate home loan wars as lenders battle for new borrowers following the Reserve Bank's cash rate cut.

The bank dropped its one-year fixed rate home loans to 4.79 per cent, while its Bank of Melbourne and St George divisions lowered their one to five-year fixed rates to below 5 per cent.

"It's a further continuation of injecting more competition into the home loan marketplace, and also a confidence booster given that we've got the lowest government cash rate for 53 years," Bank of Melbourne chief executive Scott Tanner said.

The Reserve Bank's decision to slash the cash rate to 2.75 per cent on May 7 saw a flurry of lenders, including the big four banks, pass on the cut in full.

ANZ took a step further by dropping its standard variable mortgage rate by by 0.27 percentage points to 6.13 per cent, matching NAB's level.

Westpac has the highest standard variable mortgage rate among the big four with 6.26 per cent.
The moves came as banks enjoy lower funding costs and strong profit growth.

"I think it presents a bit of a borrower's dilemma about whether to lock in now or hold back and see if rates fall further," Kirsty Lamont of comparison site Mozo said.

"The fact that the banks are cutting their fixed rates again so aggressively shows they are pricing further rate cuts from the Reserve Bank down the track."