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.

Tuesday, 24 June 2014

Apartments

Sometimes, units can be better investments than houses, provided, of course, that you buy the right one of the right type. 

In particular, you might want to buy this type of unit:
  • 2 bedroom, 1 bathroom, 1 parking space, with a balcony
  • with owner-occupier appeal
  • in a sought after area of very high demand
  • walking distance to transport links for the city centre employment hubs
  • walking distance to shops and entertainment
Also look for:

  • where there are effective height restrictions on building new developments and constrained supply
  • a quiet street with park space or water/beach nearby
  • a boutique unit block of 4-12 units with scarcity value and high land value content
  • low strata fees - no gyms, pools, lifts or 24 hour concierge! - and a decent sinking/admin fund

Perhaps also consider:
  • potential to add capital value and increase rental income via a renovation

Obviously there are many more points beside only these to consider, but those are just a few of the key ones.

Read some more of my thoughts in this article on Property Update here.



One matter which I didn't note is that average household sizes can gently increase when unemployment rises, and we did see an element of this occurring in the period during and after the financial crisis. 

The long term trend, however, is that average household sizes are likely to be locked down somewhere close to 2.5, which fits in with the trend towards medium-density living in Australia's capital cities.