Now I have your attention, that’s according to the Credit Suisse Research Institute’s Global Wealth Report released in September, now more than a year after the study was conducted.
Another factor contributing to the growth in Australian millionaires is from stock market gains, which when added to those of property and other investments saw Australian’s’ average wealth (total wealth divided by the adult population) ranked 4th in the world at around $834,200 per person behind Switzerland, USA and Hong Kong. On a median wealth basis (the point where 50% of the adult population is above and 50% below the median point), Australians are the wealthiest at around $415,000 each, and this is in US dollars.
For the many of us who feel like that’s no longer the case now or that it wasn’t even back a year ago, with headlines announcing the ‘great Aussie housing bust gets worse’ and that or we are ‘looking down the barrel of increased mortgage stress’, it does little to help us feel better.
So, let’s take a look at why residential property is almost universally a topic of conversation for Australians and why its fortunes can make us feel good or not so good and importantly, how we may be able to put those discussions and our feelings into context, being a little more pragmatic about our love affair with our homes or investment properties.
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Disclaimer: The information contained in this document is provided for educational purposes only, is general in nature and is prepared without taking into account particular objective, financial circumstances, legal and tax issues and needs. The information provided in this article is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to your individual circumstances. While SMSF Association believes that the information provided in this article is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.
Ian Irvine - Guest Contributor
Ian has been a keen investor for over 40 years and can draw on his experiences from both investing on his own behalf and also having worked in financial services for more than 30 years. Over this time, he has seen many changes that impact investors’ attitudes to in what and how they invest.
He started his career in what is now referred to as fast moving consumer goods (FMCG) or grocery, working for an Australian margarine manufacturer. In 1986, he was recruited to Westpac around the time of deregulation of the sector, where he spent 10 years before taking a role at AMP and then with ASX for 14 years up to the end of 2017. He continues to be involved with ASX; working on their educational programs.
In 1996, he and his wife established their own SMSF and again the experience and lessons learned regarding managing an SMSF over the years have provided him with many insights and ideas. He enjoys sharing these with others where these are helpful and always suggest that if an investor or SMSF trustee is unsure, that they should seek appropriate advice from a licenced professional.
Ian holds a B. Com (UNSW), and lives in Sydney and enjoys travelling to and meeting investors and SMSF trustee at the educational events with which he has involvement with from time to time.