Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory & buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

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.

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Friday, 1 July 2016

Record household wealth takes a breather

Property prices steady in Q1

Dwelling prices steadied in the first quarter of 2016, as I looked at here in more detail here previously. 

With share markets also down a notch in the first quarter, total household net worth ticked down marginally to $8,64 trillion. It was the first such quarterly decline since September 2011.

Australians have about $4 trillion in net worth or equity tied up in housing. Sounds like a lot, but then in the UK - where there is no compulsory superannuation - the share of housing wealth has been tracking at close to two thirds of total household net worth according to the Office for National Statistics. 

Australia's average net worth per capital therefore ticked to just a notch below $360,000, which is still exceptionally strong. 

Gearing measures

On the matter of housing affordability, the interest payable to income ratio increased for a second successive quarter, although it remains 37 per cent below its 2008 peak. 

Gearing ratios ticked a bit higher, both for mortgage debt to housing assets (28.6 per cent) and for debt to assets (20.5 per cent).

Overall, Q1 was a soft quarter for household net worth.

However, CoreLogic reported today that both Sydney houses (+6.8 per cent) and apartments (+6.7 per cent) surged in value in the June quarter, so household net worth will no doubt increase again in Q2.

Houses and units across the eight capital cities grew by +3.8 per cent and +3.7 per cent in the June quarter respectively.