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).

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 is 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 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'.

"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, 26 September 2016

Chinese buyers...where to from here?

Wall of capital?

Chinese capital has a huge role to play in Australia's housing market over the next few years, for better or for worse. 

But there are some looming obstacles. 

New South Wales recently introduced a 4 per cent stamp duty surcharge for non-resident buyers, with a 0.75 per cent land tax. 

Harsh, yes, but not as onerous for apartment buyers as the 7 per cent stamp duty surcharge that became effective from 1 July in Victoria, while Queensland has also introduced a 3 per cent surcharge. 

Meanwhile, banks and brokers fearing investigation have become extremely reluctant to lend to non-resident buyers declaring only foreign income. 

With a record volume of apartments due for completion over the next two years, and many of these having been bought off the plan by overseas buyers, one way or another one feels that something has to give. 

Fork...

At this juncture it feels like it could go either way.

We know that Australia (and particularly Melbourne and Sydney) is a favourite destination for Chinese capital. 

Across the drink, Vancouver recently introduced a monster 15 per cent tax on non-residents which has turned Chinese investors away and is pushing that housing market south.

This could in turn lead more Chinese buyers to look at Australia as the destination for their fleeing capital.

Although prices have gotten more expensive in Australia for local buyers, thanks to foreign exchange movements this is not so for the Chinese. 

Unit prices may have increased by 41 per cent over the last four years in Sydney, for example, but when translated into CNY prices have not moved up at all in real terms.