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).

5 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 finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete 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'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - & author of Things That Make You Go Hmmm...one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, MacroBusiness.

Thursday, 13 March 2014

Inner or outer suburbs?

It's a long-running debate in Australia - which suburbs should you look at for long-term capital growth from property?

My view has always been the same: the well-located and landlocked suburbs closer to the city next to great transport links are the winners. 

Simply geometry dictates that there is less land available in the constrained inner and middle ring.

These are the suburbs where people more than ever before want to live, close to the city, this puts upwards pressure on dwelling prices.

It was interesting to note that this week, the guy who should know the answer to this question since he works with the stats (Cameron Kusher of RP Data), put forward his own viewpoint:


I tend to agree as I've covered in previous blog posts. 

New stock in the outer suburbs can distort median price data, but actual capital growth over time is likely to be lower. 

It's pretty obvious if you think about it. 

Prices in Sydney's eastern suburbs didn't get to where they are with sluggish capital growth and these areas remain popular with higher income earners.

Like it or not, the big dollars earned by investment bankers flow in to the inner cities, creating iniquitous 'cones' of wealth, a trend which can be seen across many of the world's large capital cities.