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'.

Monday, 18 July 2016

Victoria population & household projections

State government projections

The Victorian State Government released an interesting document showing some of the key trends in Victoria's population and household projections out to 2051.

One of the most notable trends is that Greater Melbourne is attracting younger and aspirational folk.

Source: DELWP

The projections out to 2051 show Greater Melbourne's population exploding to well beyond 8 million, while the regional population growth figures project only a moderate increase. 

If anything, these regional figures look to be potentially overcooked to me, given that they project an ongoing strengthening in population growth despite there being any number of rural areas where the population is actually in decline. 

Long term outlook

One of the challenges facing property investors - and indeed nearly all investors today - is myopia. 

They tend to focus on shorter and shorter term outcomes instead of long term results. 

And given that we are on average living much longer today, almost all of us should be focusing on longer time horizons for investment. 

To explain what I mean, the below figures show the projected population growth over the four decades to the middle of the century.

The population of Greater Melbourne is projected to expand hugely by 3,854,700 over that time to a total of 8,024,000, accounting for 85 per cent of the growth.

Geelong, which is located very close to the south-western edge of Greater Melbourne, is also expected to grow by 229,000 persons, accounting for 5 per cent of the growth. 

Everywhere else, over time there is going to be less upwards pressure on land values. 

Partly that's because smaller cities have more land available for release, acting as a safety valve on rising land prices.

And partly it's because absolute regional population growth just won't be very big, even if these relatively bullish forecasts prove to be somewhere close to accurate. 

Similar trends are expected in other states.