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Property price boom boosts average household worth towards $1 million; Property and superannuation make up the bulk of the nation’s riches
Topic Started: 24 Sep 2017, 09:33 PM (503 Views)
Bardon
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Property price boom boosts average household worth towards $1 million

Rising property values have pushed the nation’s household wealth towards the million-dollar mark, with research finding the average Aussie household is now worth $929,400.

While that means outright homeowners are sitting pretty, the gap between the richest and poorest rungs on the wealth ladder has grown to massive proportions, leaving single parents and renters among the worse off.

“The wealthiest 20 percent of households held more than 60 percent of all household wealth, averaging $2.9 million per household,” Australian Bureau of Statistics chief economist Bruce Hockman said.

“By comparison, those in the middle 20 percent held 11 percent of all household wealth, averaging $528,400 per household in 2015-16. The lowest 20 percent controlled less than 1 percent of all household wealth, with average wealth at $36,500.”

The ABS Income and Wealth survey looked at 18,000 households across Australia and calculated wealth based on the value of assets such as property, investments and savings, less debts such as loans and credit cards.

Overall, Australia’s average household wealth was pushed up $94,100 in the two years to 2015-16 due to higher property values.

Melbourne households' net worth averaged $950,300 compared with $639,200 for the rest of Victoria.

Households that own their home outright were worth a cool $1.6 million on average across the board, whereas renters net worth averaged just $199,000.

Property and superannuation make up the bulk of the nation’s riches, while cars are valued at $24,500, home contents $70,000, and shares $25,000.

“For most Australians, both income and wealth tends to increase over the life course, and then decrease after retirement, as households have less income after they stop working and start to draw on stores of wealth such as superannuation,” the ABS noted.

Property accounts for $626,700 of the average household’s overall net worth, while superannuation accounts for $188,400.

https://tenplay.com.au/news/national/september-2017/property-price-boom-boosts-average-household-worth-towards-1-million
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Trollie
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Renters worth $199k vs $1.6mil for outright owners.

Tell us again bears how a life time of renting is clever :re:
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eloi75
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Trollie
24 Sep 2017, 09:44 PM
Renters worth $199k vs $1.6mil for outright owners.

Tell us again bears how a life time of renting is clever :re:
how much cash does a homeowner have vs renters? Most people are asset rich but cash poor. Assets are only worth what people are willing to pay for it. cash is cash
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herbie
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eloi75
24 Sep 2017, 09:48 PM
how much cash does a homeowner have vs renters?
I's got $850K - Oh it's not a lot I truly knows - But surely it must just count for a little, little bit? ... :)
Edited by herbie, 24 Sep 2017, 09:53 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Bardon
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herbie
24 Sep 2017, 09:53 PM
I's got $850K - Oh it's not a lot I truly knows - But surely it must just count for a little, little bit? ... :)
An investor pulled out an equity finance deal on my company yesterday, something to do with the Qatari Saudi brouhaha, if they hadn't I would have smashed your little nest egg out of water.
So I shall remain poor until the next time.
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herbie
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Bardon
24 Sep 2017, 09:57 PM
An investor pulled out an equity finance deal on my company yesterday, something to do with the Qatari Saudi brouhaha, if they hadn't I would have smashed your little nest egg out of water.
And I'd have been truly glad for you if it had transpired that way brother - So can only hope your stars align just a tad more munificently next time.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Bardon
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herbie
25 Sep 2017, 12:34 AM
And I'd have been truly glad for you if it had transpired that way brother - So can only hope your stars align just a tad more munificently next time.
Cheers it should land at some stage, although being classed as income when it does then the tax bill has the potential to be equivalent to the Lithuanian GDP. Unless of course I can funnel it all through the discretionary trust that is.
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Trollie
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eloi75
24 Sep 2017, 09:48 PM
how much cash does a homeowner have vs renters? Most people are asset rich but cash poor. Assets are only worth what people are willing to pay for it. cash is cash
Cash is an idiot's choice of investment, no surprise you think it's a good idea then
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