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, 20 February 2017

RBA remarks on housing

Luci Ellis on housing

It's fascinating to get a glimpse inside of the mind of Luci Ellis, once head of Financial Stability and possibly a Reserve Bank of Australia (RBA) Governor of the future.

There's surely no need for me to rehash her speech in full here. 

A couple of interesting points to look at briefly here, though.

Firstly, although there is a lot of mortgage debt around in Australia: "...we say that most of the mortgage debt in Australia has been borrowed by those most able to service it".

A valid point, though I also believe that household debt levels are stretched for many lower income earners, a factor also acknowledged by the Reserve Bank rhetoric in the speech.  

And secondly, the RBA noted that the big decline in home ownership for 25 to 34 year old age group happened years ago, and therefore is not related to recent price gains. 

In fact, home ownership rates in this cohort even appear to be gradually rising in the RBA's chart.

This second piece of analysis is arguably bonus, since it relies upon figures from as long ago as the 2011 Census.

I believe the most recent Census - assuming everyone filled out their surveys given the website challenges! - will show home ownership rates dropping in Sydney, if perhaps not so much elsewhere. 

I discussed both of these points in more detail during the recent Devils & Details podcast with Business Insider here

Still, an enlightening speech!

House Insurance, Protect, Home, Care