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.
Saturday, 5 April 2014
I've lived in or around Pyrmont for many years now.
It's a cracking suburb and ultra-convenient since it is any easy walk into the city across the Pyrmont Bridge and Darling Harbour.
Back in 1994, the Sydney Morning Herald mused whether Pyrmont would become the "slum of the century" (??).
Some people have no vision!
In growing cities like Sydney suburbs close to the city become increasingly sought after, particularly as traffic problems in the more distant suburbs deteriorate by the year.
Median household incomes in Pyrmont have risen by approximately 5.8% per annum for over a decade and a half now.
Pyrmont’s median unit price rose from $221,200 in 1995/96 to $664,000 in 2012/13, a rise of 6.8% per annum.
That's a little above growth in the Sydney median unit price of 6.6% p.a. in the same period.
It's hard to say where median unit prices will be by the end of this year, since Sydney's apartment prices are rising by the month and have been for some time now.
The demographic intake in Pyrmont is increasingly that of wealthy young professionals, but many of those - including me in fact - are electing to remain in the suburb for longer according to BIS Shrapnel, rather than relocating out to suburbia.
Years ago I bought an apartment in the sensationally located One Darling Harbour block, a somewhat larger development than I would usually recommend for a property investment.
Normally, if you are looking at buying an apartment boutique blocks are the way to go, due higher land value content - "land appreciates, buidings depreciate" as the old mantra goes.
Well, yes to a point...but what ultimately drives real estate values is demand (people wanting to live there) and scarcity value (few ready substitutes).
Therefore, it definitely pays to find a property "with a twist" or with an "X factor" which will mean that it cannot be easily replaced and it will be in extremely high demand for decades to come.
Water and harbour views in Sydney are on such "X factor". A gentle strolling distance to the city can be another.
On the other side of the water, similarly sized new 2 bedroom apartments are selling at Barangaroo for an outlandish $2 million++.
And yet, of course you know what people said to me at the time: "You're crazy to spend $600,000 on a flat" - I guess that's because real estate nearly always seems expensive when you buy it.
First Saturday of the month means that it is the Pyrmont Farmers Market today...