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Household wealth reaches above $200,000April 2004
The report results showed the median wealth of the average Australian household was $218,500. The most valuable non-financial asset of most households in the survey was their home. According to the report, New South Wales and Queensland households were likely to have higher levels of wealth than other states predominately as a result of the boom in median property prices in these states. In New South Wales the median household wealth was $265,000 in 2002, compared to a median household wealth in Queensland of $173,000 and a median household wealth in South Australia of $153,100. Household wealth was also determined by stage of life, with households towards the end of their working life, perhaps not surprisingly, having more savings, greater equity in their homes and lower mortgages than younger families. People who choose to rent also had a considerably lower net worth than home owners, primarily because renters are generally younger in age than home owners. Around 17% of all households that participated in the survey owned a residential property that wasn’t their primary place of residence, with a median value of $200,000. Of these households, only 10.3% received a rental income from their second property. People who owned their own home were far more likely to own a second property than those who rent (again, this is likely to be a reflection of the fact that renters are generally younger than home owners), although 10% of renters did own a second property. The median value of second properties owned by people who also own their own home was $200,000, compared to people who rent and own a second property in which case the median value of the second property was $160,000. Around 42% of second properties owned by home owners had an outstanding mortgage. In contrast, 70% of second properties owned by renters had an outstanding mortgage. Half of all home owners who took part in the survey reported they had an outstanding mortgage on their primary place of residence. The median value of outstanding mortgages was $90,000. Of these outstanding mortgages, 80% were first mortgages, 2% were loans to family or friends and the remainder were home equity loans or lines of credit.
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The first comprehensive survey of household assets, debts and
savings has been released by the Reserve Bank of Australia. The
survey is based on the Household, Income and Labour Dynamics in
Australia survey which was completed in 2002 and incorporated data
from more than 7,200 homes across the country.
