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'.

Friday, 16 December 2016

Here comes the infrastructure boom

Sooner or later Australia will enter a residential construction downturn, ending a boom that in the circumstances has done a fine job of plugging the gap left by the drop in resources investment.

What comes next?

The only viable answer is infrastructure, as I looked at in a bit more detail here.

The good news is that infrastructure investment should now be set to take off. 

For example, there are some huge road projects in the pipeline.

Throw in rail and buildings projects that are outside the resources sector, and you get a big projected uplift in major construction projects, almost doubling to reach a forecast of $20 billion per annum by 2018. 

Source: Boral (ASX: BLD)

At its peak mining capital investment touched an even higher $24 billion per annum in 2012, since retracing to $10 billion. 

It's worth noting, however, that resources capex may not have a whole left further to decline, for the reasons discussed here previously.

As such, massive investment in roads infrastructure is expected to translate into stronger materials demand from now forth, and this forms an integral part of a broader pipeline of infrastructure and commercial construction activity.