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, 31 March 2015

Real Estate Talk - South Australia

South Australia

Haven't caught up with the latest Real Estate Talk show for a while.

Here Peter Koulizos discusses Adelaide's northern suburbs:

"Kevin: Are there some areas we should avoid, Peter?

Peter:  I think I alluded to it earlier. The fact that Holden is going to close its manufacturing plant is going to impact on those northern suburbs.

Holden is centred around a suburb called Elizabeth.

A lot of people may have heard of Elizabeth or Salisbury because they are the cheaper suburbs because they are such a long way from the city. But it won’t be the end of the world.

In South Australia going back many years, we’ve had Chrysler shut down their plant; it wasn’t the end of the world for Adelaide or South Australia. Even more recently, we had Mitsubishi shut down their plant, and it wasn’t the end of the world for Adelaide or South Australia.

Yes, it will have an impact.

It won’t be too severe, but for the next few years, I would probably ask for people who are listening to your show to keep that in mind. It’s not just the people working in Holden, but it’s all those other businesses around the area that supply stuff to Holden; they won’t be needing as many workers either.

If there is not as much work in that particular area, it’s going to slow demand for property in that area, which means property prices will slow down, and you might even find rents dropping a little bit."

Indeed, beware - a point raised here many times previously, the shuttering of an industry will impact more than just the employees of one plant.

The good news is that the reported unemployment rate in Elizabeth seems to have stabilised in Q4 2014.

The bad news is that it has stabilised at the highest capital city unemployment level in the country at an astonishing 32.6 percent.

In Davoren Park the reported unemployment rate is 19.8 percent.

There are a number of labour markets facing severe challenges at the present time, the subject of a forthcoming post.