Household wealth rises in Australia
Household wealth in Australia rose by $232 billion in the March quarter, topping $8 trillion for the first time, according to an article in the Australian. However the article also says that unless you own lots of shares, have plenty stashed away in super, or are invested in housing, chances are you didn’t get a slice of it.
The rise in wealth – or net worth as the Australian Bureau of Statistics calls it – was the result of a $262 billion increase in the value of household assets, offset by a $30 billion rise in liabilities, mostly debt. It took household net worth to $8.09 trillion.
The ratio of mortgage debt to house and land values stood at only 16.5 per cent in the mid-1990s and reached 20 per cent for the first time in mid-2000 before topping 25 per cent in the June 2008 quarter, according to the article.