Pete Wargent blogspot
Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), and CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).
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.
Tuesday, 14 January 2014
95% mortgages to come roaring back in Australia
And we wonder why property markets 'cycle'?
Attitudes to credit are so short-lived it never ceases to amaze.
Over in Britain, after a housing bubble was in part responsible for blowing up the economy, then a mere 5 years later plans were afoot to intervene and re-inflate the market with easy credit and effectively zero interest rates.
Here in Australia, lending standards never declined quite to the same extent which is evident from the relatively low level of non-performing loans.
We didn't have the same spike in unemployment here either which also clearly helped.
Heck, in England it was possible to take out 105% LVR loans - a bonus 5% to undertake renovation work! - no wonder the market went nuts.
Yet credit did tighten in Australia between 2008 and 2010 quite markedly with lenders tending to require at least a 10% deposit on most property purchases.
Not so any more. Check out the latest stats:
This proportion was 86% during 2008 & fell back to 49% in 2010. Looser credit will fuel a strong residential recovery during 2014. Borrowers were warned about borrowing too much. Commsec – among others – expect interest rates to rise in the last quarter of calendar 2014."Analysis by Rate City shows 70% of the 2,800 home loan products on their data-base are now allowing deposits of 5% or less.
For the rest of the 2014 property market news, check out the latest Matusik Missive here.