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 finest 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.

Monday, 30 March 2015

"3 handle" ahoy!

Record low borrowing rates ahoy. From Australian Broker:

"Mutual lender, Newcastle Permanent Building Society has cut its three-year fixed rate home loan below 4%. 

The lender is now offering its three-year standard fixed interest rate at 3.99% – a 20 basis point reduction off its old rate. The new rate came into effect Friday 27 March.

Acting CEO, Andrew Yost said the rate is unheard of in the Australian mortgage market. 

“We believe that this may be the lowest three year fixed rate home loan ever offered by a major Australian banking institution,” he said.

“Given the three year fixed term is the most popular among people who prefer the certainty offered by fixed rates, this is a major win for home loan customers, and once again we’re confident the major banks will find Newcastle Permanent tough to beat.

“Until today, a fixed interest rate of 3.99% p.a. for three years has been unheard of in Australia, but given the historically low official cash rate, we’re proud to lead the retail banking industry to set historically low rates of our own.”

The Sydney market has responded to low rates like no other, with CoreLogic-RP Data's index showing clearance rates at record highs from very high volumes.

Brisbane is tipped by experts to be the next city to boom. Australian Broker again:

"Brisbane will be the next boom town, according to a leading housing market expert, tipped to achieve price growth of up to 10% over 2015.

Dr Andrew Wilson, senior economist for the Domain Group, says the Brisbane market has been recording solid growth for the past two years.

“It was another solid year last year for the Brisbane market. We’ve tracked medium house price growth of just under 6% for 2014, which was up another 1% from the 2013,” he told Australian Broker.

“The market has certainly recovered its confidence; there are some early signs of improved economic activity. It’s certainly a market that has been in catch-up mode. Its growth cycle started later than some of the other capital city markets, particularly Sydney, Melbourne and Perth. But certainly the Brisbane market is reinvigorating itself now."

The Brisbane market is set to continue its growth trajectory this year, according to Wilson, driven by the strength in its inner city markets. Price growth will push up to about 6% or 7%, but the inner city markets could grow by up to 10% this year.

“It will be another solid year in prospect for the Brisbane market,” he said. “It’s been driven mainly by mid to high price ranges rather than the lower budget price ranges in the mid to outer suburbs, so it is Brisbane inner city that has been the strong growth driver and prestige property as well.

“But it certainly remains affordable in comparison with other capital city markets – real prices are still below where they were nearly five years ago. Interest rates are also at historically low levels which improve affordability further.

“It is the value opportunity which is driving buyers. It is the perception of buyers that it is a good time to buy."

Wilson says Brisbane is likely to overtake Melbourne as the second best performing market in 2015, after Sydney. As a result, it is likely to see a pick-up in investor activity.

“There are good prospects for investors in Brisbane. Capital growth will not be around the Sydney level this year although it is starting to push towards that. It will likely be the second best performing market this year," he told Australian Broker."

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