Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & 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's 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 & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & '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, 6 August 2015

Opinion: Speculators!

An opinion worth listening to - Grant Harrod, top dog at LJ Hooker.

Speculative markets are always hot topics of conversation, especially in real estate media. 

Grant Harrod, CEO of leading real estate network LJ Hooker weighs in:

"A crackdown on speculative investor lending can only be good for the property market.

The pressure placed on banks by Australian Prudential Regulation Authority (APRA), to curb lending to investors, will ultimately create a more stable market and lessen any risk poised by speculative buyers.

It is hoped that the changes will also take some heat out of section of the Sydney and Melbourne property prices.

We are not expecting it will create a big difference as population growth and an undersupply of homes should keep buyer demand in both markets strong.

Property remains a much more stable and secure investment than other assets.

And because of this investors have come to residential real estate significantly in the past couple of years, probably to the detriment of the equities market.

Many are sophisticated and more in tune with the market than in the past because they are now able to undertake research or reengage real estate agents who are now better informed on valuation and yields.

As long as they stay wary of speculative markets and stick with more stable markets where they can buy with a degree of confidence.

While nothing is without risks, Sydney, Melbourne, Perth, Brisbane and Adelaide are unlikely to see a dramatic increase in rental vacancies.

The reality is that people have to live somewhere and there remains a fundamental shortage in the major markets of properties versus population growth.

Investing in property offers a lower risk in comparison to other asset classes.

In the background, however, banks are beginning to lower their valuations to avoid excessive speculation with demand for property being strong.

Investors are typically unemotional when buying assets; while owner-occupiers are buying a lifestyle.

You have to be very careful when creating a property portfolio that you are in line with the value of the asset as determined by market and the banks.

Typically investors will retract if there is talk around prices coming back or valuations being different to the market. They are rationale investors focused on yields and capital growth.

The good news is most are well covered.

Even significant movement wouldn’t be enough to cause the sudden flow of distressed properties coming into the market.

Most property are not excessively geared and as long as they have income, investors will ride out any lows."