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, 4 April 2017

Credit growth slows to 5pc

Credit growth slows

Won't spend too much time on this, as the Financial Aggregates figures relate to before APRA's latest round of changes and therefore the landscape has once again shifted. 

The Reserve Bank's latest figures showed credit growth of 0.3 per cent in February, following on from a result of just 0.2 per cent in January. 

Housing credit increased by 0.6 per cent in the month, but both business and personal credit growth were negative.

Over the year to February housing credit increased by 6.4 per cent down from 7.3 per cent a year ago, with investor credit rising a notch further to 6.7 per cent. 

Annual credit growth slowed to 5 per cent from 6.6 per cent a year ago.

Business credit growth in particular has slowed from 6.5 per cent a year ago to just 3.7 per cent.

There are many ways to fund business expansion,of course, but this doesn't necessarily bode well for the business investment outlook. 

As a result, housing now accounts for a record 61.7 per cent of outstanding credit.

There was a further $1 billion of housing loan purpose switching taking the total switched to owner-occupier from investor loans since July 2015 to $50 billion. 

And housing credit outstanding increased to $1.65 trillion by February 2017.

More measures have since been taken to slow the creation of new interest-only loans.