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

Monday, 9 September 2013

Low interest rates to stimulate dwelling construction?

There's been a lot of debate as to whether low interest rates will start to stimulate dwelling construction as intended, or simply lead to speculation in the housing markets.

To date, dwelling construction has only shown a moderate increase, but today's data from the ABS suggests that stimulatory monetary policy will begin to work as more Australians are buying new dwellings.

The number of loans for the purchase of new dwellings have increased for 17 consecutive months and are now +37% y/y.

The value of those loans is up by some +33% in just the past year.

Graph: Purchase of new dwellings

Source: ABS

ABS:

"The number of finance commitments for the purchase of new dwellings for owner occupation (trend) rose 1.4% in July 2013, following a rise of 2.1% in June 2013. This is the seventeenth consecutive rise since March 2012."

It looks to be a very positive trend to me.