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 of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, MacroBusiness.

Friday, 27 June 2014

Financial year in review

It's been a great year for creating wealth, largely thanks to ongoing low interest rates which continue to drive capital away from fixed interest products and into shares and property.

As usual, of course, some people would have lost money on the share markets through chasing fast returns.

But had you simply held the XJO (ASX 200) index you'd be on track for a very smart +14% annual return even before dividend payments are thrown in. 

Adding in the dividend component, annual returns would be approaching +19%.

As it transpired, all of the share market uplift was in the first half of the financial year.

All of which, by the way, all comes off the back of a romping +20% gain in the 2013 financial year.

These are the best back to back gains that have been seen since the heady pre-financial crisis days.

Meanwhile, Australian property prices are up by around +10% in the past year too, with Sydney comfortably leading the way as we predicted here.

BIS Shrapnel recently came out with a paper which stated that the Sydney apartment market boom has plenty of gas left in the tank, predicting another +15% of capital gains in the next two years.

We tend to agree that certain parts of the Sydney market will likely keep rising in price until interest rates do.

This is partly related to years of undersupply, as I detailed recently here on Property Update.