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'.

Tuesday, 1 March 2016

City vs. Regional

Gosh. The gap between house prices in the UK capital city of London (& the South East of England)  and the rest of Britain just keeps on accelerating. 

The latest UK Land Registry data for January 2016 reveals how in many regions house prices are struggling to get back to where they were before the 2007 crash. 

Meanwhile London prices, charted here in British pound sterling, have virtually ripped off the top of the chart (actually they did, and I changed the y axis). 

To make the data more readily comparable, the chart below indexes regional prices as at January 1995 to 100. 

The index results range from 176.8 for the North East, to an astonishing 576.0 for the capital city, London.

Before the financial crisis seminar promoters frequently liked to encourage price speculation with the use of 100 per cent mortgages on the basis that "property always goes up". 

In the end this may have worked a treat in London, and to some extent in the regions immediately surrounding London where prices have been pumped higher by demographic flows and the restrictive "green belt" policy.

In the regions away from London, though, not so much. Caveat emptor.