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.

Thursday, 3 July 2014

London house prices +25.8% y/y

UK house prices rose for the consecutive month in June, according to Nationwide, taking the average house price to new highs.

Prices nationally rose by 1.0% m/m in June and 11.8% y/y (click chart):

Regular readers will know that my favoured and long-recommended locations for property owners and investors seeking capital growth are London and Cambridge, as noted on this blog on mangy previous occasions.

In the event London led the annual growth with a thumping 25.8% y/y gain.

And Cambridge was next up with 20% y/y growth.

These locations saw far less of a downturn in the financial crisis than regional areas and towns located far from London.

Of the London boroughs, many of our favoured choices where AllenWargent property buyers have bought properties - both for ourselves and for clients - featured prominently, including Croydon (+20% y/y), Ealing (+18% y/y), Greenwich (+23% y/y) and Islington (+23% y/y).

Interestingly a number of the strongest performers over the past 12 months in London have been 'second tier' boroughs.

As noted here on many occasions, we are moving into a new era, and there has been a global shift towards storing wealth in real estate.

The great leveraging up of previous decades in developed countries has largely already taken place.

If you want  to outperform in the future, we believe that buyers with a long term outlook should look to inner suburbs of large capital cities, such as Sydney and London.

Cameron Kusher of RP Data in Australia prepared the below chart yesterday which underscores the point.

Notes Kusher:

"The post financial crisis capital growth in Australia has been all about Sydney and Melbourne."