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 Hmmm...one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, MacroBusiness.

Friday, 19 February 2016

Delinquencies

Stress out

I've noticed in a few parts vested interests trying to promote the idea that Australia's property markets are groaning under monstrous mortgage stress, which will lead to a mass of defaults and panic selling.

Of course, this is nowhere near being the case, with mortgage buffers and offset accounts building by the month to unprecedented levels in the prevailing low interest rate environment.

Westpac (WBC) released its 1Q16 Capital & Asset Quality update to market this morning, which showed that 90+ day delinquencies on mortages continue to track at very low levels at just 46 basis points.


Queensland had previously been tracking at elevated levels following severe flooding in the state, but even here delinquencies have declined.

Undoubtedly there has been mortgage stress in mining and resources regions.

Indeed see the 60 Minutes show on television on Sunday which will highlight the case of the one-horse coal mining town of Moranbah, where property prices have crashed by up to 80-90 per cent.

And there have of course been other mining towns that have befallen a similar fate, such as Dysart and several more besides. 

Overall, however, mortgage delinquency rates happily remain low.

The lowest delinquency rates of all are recorded in New South Wales, followed by Victoria.


Source: Westpac Banking Corporation (ASX: WBC)