Articles by Pete Wargent

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is a Chartered Accountant, Chartered Secretary and has a Financial Planning Diploma. Using a long term approach to building businesses, investing in equities, & owning a portfolio he achieved financial independence at the age of 33. Visit his blog


They’re telling us Australia is heading towards Armageddon. Are they right?
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They’re telling us Australia is heading towards Armageddon. Are they right?

Some folks are trying ever-so-hard to convince everyone that Australia is heading for an economic collapse. Nothing new there, of course, but unfortunately for the gloomers nobody seems to have told the economy itself, which saw growth accelerate to a 6-year high of 3.4 per cent in FY2018. Meanwhile the resources boom is now paying…

Is mortgage stress really at record highs?
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Is mortgage stress really at record highs?

Has a ‘perfect storm’ pushed mortgage stress to ‘epidemic’ levels, and, indeed, ‘record highs’? OK, breathe. Let’s take a look. Fortunately this one is an easy question to answer, because there’s a very simple de facto measure of mortgage stress, being late payments – or mortgage balances 30+ days in arrears. 30+ day prime arrears…

Why the scare mongering? Share of outstanding IO loans plunges to multi-decade lows
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Why the scare mongering? Share of outstanding IO loans plunges to multi-decade lows

OK, first things first. I am indeed a so-termed vested interest: I would like to see full employment, stronger wages and household income growth, the Aussie economy growing at least at trend or ideally above trend, and I don’t want to see the housing market getting zinged unnecessarily.  Yep, you got me on that one….

Property Investors Squashed Further
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Property Investors Squashed Further

APRA’s latest monthly banking statistics reported negative growth in investment loan exposures in July. Commonwealth Bank, ANZ Bank, Westpac Banking Corp, and Suncorp all recorded an outright decline in outstanding housing investment loans, while NAB’s investment loan book was broadly flat. Year-on-year growth is either negative or slowing for each of the major banks. The…

A Rental Crisis Looms making Labor’s proposed changes insane
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A Rental Crisis Looms making Labor’s proposed changes insane

Some months ago I wrote about the prospect of a ‘rental crisis’ being the next big housing market story (even leading some readers to question my mental health – isn’t social media the best?). Of course, these trends play out over a period of years rather than in tune with today’s 24-hours news cycle. And…

Is there really a housing deficiency in Sydney
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Is there really a housing deficiency in Sydney

Another day, another housing front page headline, today’s special from someone I’ve literally never heard of being quoted in the media before. A slightly quieter piece caught my eye in The Australian, quoting BIS Oxford Economics, citing a deficiency in stock in Sydney: ‘The difference in Sydney this time is that the downturn comes while…

What every property investor must know about the power of compounding
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What every property investor must know about the power of compounding

Most of us have heard about the concept of compound growth, the snowballing effect caused by growth upon growth. You know the kind of thing: – If you could fold a piece of paper 42 times it would reach the moon; or  –  24 rabbits in Australia became 2 million in only a decade; or…

Will mortgage stress cause a property market meltdown
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Will mortgage stress cause a property market meltdown

Such a huge volume of garbage is being written, filmed, podcasted, Facebooked, and blogged about about mortgage stress right now that it’s nigh on impossible to keep up! No fewer than one million looming defaults I saw on TV this week! Oh, really. And as always just a year away, I’m sure. One of the biggest stresses…

It’s easy to be anti-immigration and blame migrants, but…
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It’s easy to be anti-immigration and blame migrants, but…

Lots of discussion about immigration is to be expected in the lead up to the Federal election, and as the Australian population clock approaches 25 million in the coming days.  It’s interesting to note that the locations where immigrants have mostly been moving to are also by far and away the strongest labour markets in…

Inflation undershoots again - here's what this means
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Inflation undershoots again – here’s what this means

Today’s inflation result undershot the expectations of the most credible forecasters for a seventh consecutive quarter.  Headline inflation came in at 0.4 per cent in the June quarter, mainly due to a 6.9 per cent leap in fuel prices, which may not be sustained, and a further increase in tobacco excise. More importantly, the underlying…