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'.

Monday, 1 May 2017

Credit cards being used a bit more


Lots of talk from surveys about who is or isn't under mortgage stress this week.

The Reserve Bank's financial indicators showed financial stress has declined for highly indebted 2002 cohorts as interest rates have been dropped sharply. 

The RBA noted from the HILDA surveys that:

"There was a broad-based decline in the share of households experiencing episodes of financial stress between 2001 and 2015".

However, highly indebted households and more recent mortgagees may be finding life somewhat tougher lately.

The RBA Governor will present a speech on household debt on Thursday, so it will be interesting to see how this issue is being viewed from Martin Place. 

Credit card stats

Here I'll take a 30-second look at the latest credit card statistics from the Reserve Bank of Australia (RBA), which show that credit card balances accruing interest have increased marginally to $33 billion, but remain well below the $37 billion seen in 2012. 

Year-on-year credit card balances remain down by 2 per cent, having now spent more than four years in negative territory.

The proportion of credit card limits used has bounced moderately from a multi-year low to 35 per cent.

And the average credit card balance also moved up to $1,973, but still remains 20 per cent below the 2012 peak.

The wrap

Overall, there is a case to be made here for rising mortgage rates causing a little more financial stress lately.

My sense is that cohorts that were already in the housing market a decade ago are generally finding life to be a breeze at the moment (provided that they remain gainfully employed). 

Perhaps some deleveraging needs to take place for more recent entrants to the housing market, however.