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

Tuesday, 10 September 2013

Osborne: UK economy has turned a corner

There's no doubt that the UK economy is starting to drop some better numbers with economic growth returning.

Sky News:

"George Osborne has said the British economy has "turned a corner" with the latest financial growth figures a vindication of the Government's long-term strategy.
"We held our nerve when many told us to abandon our plan," the Chancellor told an audience of academics, think tank members and business leaders in central London ahead of the Conservative Party Conference later this month.
Mr Osborne said there were "tentative signs of a balanced, broad based and sustainable recovery," but warned of the need to make "many billions" more in savings after the next election.
"The plan is working, but the recovery is still in its early stages, plenty of risks remain and more years of hard decisions lie ahead. Our economy is turning a corner, but we must not take anything for granted," he said."
Critics would highlight that the cost of energy and some travel costs have moved up, thus hurting lower income earners, and this will be a challenge going forward.

The housing market has been stimulated with the Halifax House Price Index +5.4% y/y.

The Guardian will continue to run its articles about struggling first homebuyers, despite affordability outside London actually being very good. 

In fact, the number of first homebuyers has increased by an astonishing 45% in the last year, so I'm not sure what the Guardian's point actually is.

Out of interest I took a look at property prices where I used to live when I was working in London as a newly qualified Chartered Accountant (i.e. quite a nice area) - Colchester in Essex, which is on the direct train line to the City of London.

A quality 2 bedroom flat in good nick next to the train station exactly like the one I used to live in now costs around £80,000. A quality one bedder would set you back around £70,000 or perhaps a little less.

The Bank of England base rate is 0.5% and mortgages are comfortably available from around 3% upwards. 

Unaffordable housing? Not at all - unrealistic expectations.

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Notes: UK minimum wage is £6.31/hr, meaning that the lowest paid full-time worker earns around £12,000. Welfare benefits are now capped at £26,000 per annum.