Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory & buyer's agents, 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, 6 September 2013

Islam: Wonga loans benefiting from expensive UK housing

Interesting article here from Faisal Islam, where he again takes a potshot at the expensive UK housing market.

He argues that the large increase in the use of Wonga loans is a result of an expensive cost of dwellings.

"The average loan is £180 for 17 days, with interest of 1 per cent per day.

“Very few customers are on benefits. 

Our market is a banked market of people who have got smartphones. 

They are the one third [of applications] that get accepted. Most of our customers were not looking for a short term loan when they came to Wonga. 

Most of our customers are using Wonga as an alternative to an unauthorised overdraft fee and some credit cards."

It's an interesting argument, this, put forward by both Wonga and Islam: Wonga customers are not stupid, they would simply rather have a smartphone and pay interest of 1% per day, instead of the traditional method of using an overdraft or a credit card at a lower rate of interest or - heaven forbid - actually saving some money to buy consumer items.

As I said, it's an interesting point, but I'd like to suggest a slightly different angle.

Paying interest of 1% per day because you "don't trust" a bank (but you do trust good ol' Wonga to come up with the goods)?!

No, that's beyond stupid: that's just dumb. Completely and utterly 100% dumb.