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'.

Thursday, 5 February 2015

Where to buy (and not buy) property in Queensland?

Regional risks

On many occasions on this blog I have raised points of concern about rising rates of unemployment in Queensland.

The latest data from Fitch Ratings just released showed mortgage delinquency rates at their lowest level for more than seven years since 2007 at just 1.08 percent for loans 30 days past due - essentially delinquencies can fall no further than that in the present environment.

Despite this, my charts have shown there to be potential risk areas in Wide Bay, Logan-Beaudesert, Townsville, Cairns and Mackay.

I also highlighted risks in number of Queensland's mining regions. 

Indeed, the Fitch figures showed delinquencies in Kingston in Logan now to be running at 3.5 times the national average.

My charts do show, however, that inner Brisbane unemployment rates are very low and well below the national averages - and that's one of the reasons that I recommend focusing on those areas for those buying property in Queensland.

A caveat, though - although generic price growth may be very solid in inner Brisbane, it is less likely to be so through the cycle for generic apartments.

Asset selection will be crucial and investors need to source dwelling stock with an element of scarcity value.

Matusik on Queensland

One commentator who is always worth listening for real estate commentary is Matusik.

That's largely because Matusik has been around and commentating on the markets for longer than Matusik would probably care to mention.

In short, experience counts for quite a lot, and sometimes us "young 'uns" jump to fallacious conclusions. 

Here is Matusik's latest missive on "GO" and "NO" zones for Queensland (this is a free missive, but it's well worth subscribing for the paid service for a year).

Source: Matusik

Matusik's "NO" zones also included Logan City, Wide-Bay, Townsville and Cairns.

Price growth expected for inner Brisbane and the Gold Coast.

Which accords with what the chart packs maintained by this young 'un shows too. Be wary of areas where unemployment is elevated and rising.