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.

Tuesday, 17 June 2014

NSW guns for infrastructure boom!

The Sydney property boom has resulted in a behemoth stamp duty windfall for deployment in the New South Wales State Budget.

And what a huge infrastructure boost it will be for the state over the coming years. 

In 2013-14 the State Government collected a colossal additional $938 million in stamp, described in the budget papers as arising due to "a 35% increase in the residential property market".

This is great news for Sydney, and not just because the infrastructure capital works will upgrade Sydney into the world class global city and financial hub it deserves to be.

It will also be a huge boost for the harbour city because, as I discussed here, the multiplier effect that the government expenditure will have on the local economy will have dramatic "carry through effects", creating revenues and profits, employment growth, increasing consumption and economic activity. 

Consequently, the total of building work done in the NSW economy should easily break to new highs in the coming years. 

Total building work done in the state has already increased dramatically by 40% since March 2012 (click chart):

New South Wales is getting its economic act together while some of the less populous states are dying on their backsides, necessitating ongoing low interest rates from the central bank. 

Notably, Western Sydney is set to be the eminent benefactor of infrastructure expenditure from the state budget and should thrive from the booming outlay.

As reported today by the Tele, just take a look at the infrastructure spend in the pipeline:

"Rail and road budget infrastructure spending included:

  • $400 million in money reserved for the Parramatta Light Rail
  • $3.8 billion over the next four years for the West Connex, including $1.5 billion in federal government money. The total cost of the motorway, to be partly built with private sector money, is now put at $14.9 billion, up from $11.5 billion in 2011-12 dollars
  • $5.2 billion over the next four years for the $8.3 billion North West Rail Link
  • $2.8 billion to 2024 for the Next Generation Rail Fleet
  • $1.6 billion to 2019 for the light rail line from Circular Quay to Randwick and Kingsford
  • $1.2 billion over 15 years for the Opal Card system
  • $5.8 billion in major upgrades for the Pacific Highway (including federal money)
  • $681 million in Princes Highway funding, $557 million in Western Sydney Growth Roads and $359 million in Greater Western Highway and Bells Line of Road upgrades
  • Western Sydney roads to support Sydney’s second airport at Badgerys Creek ($1.4 billion)"

Read more here.