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Co-founder & CEO of AllenWargent property buyers & WargentAdvisory (subscription market analysis for institutional clients).
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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.
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"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'.
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Wednesday, 22 April 2015
Rental growth over time...
Long term rental growth
Another perspective on rents.
Although rental growth may be slowing, rents have continued to rise in nominal terms across the board over both a five and a ten year time horizon.
Over the past five years the rental index has shown growth in Sydney (+23 per cent), Perth (+21 per cent), Melbourne (+15 per cent), Brisbane (+13 per cent), Darwin (+21 per cent), Hobart (+10 per cent) and Adelaide (+16 per cent).
Over 10 years the increase in capital city rent indices has been substantial.
Such is the nature of compounding growth.
Although rental growth ebbs and flows in cycles, it is this dynamic which ultimately tips the balance in favour of being a homeowner over a long term renter.
This is also why the "don't buy a house" campaign, while probably well-meaning in its intention, was also likely to fail to gain traction in full.
In an inflationary economy rents are likely to continue increasing over the long term and therefore most Australians are likely to aspire to own an unencumbered home for the purposes of their retirement.
And this is what is helping to keep a lid on apartment rents in particular right now...new supply!
A view of Brisbane's West End snapped from the Regatta this week.
West End and South Brisbane are two suburbs in particular with a mass of new supply coming online.