On Wednesday 21st August the “Australian” newspaper reported that the Average Household Wealth declined slightly between the years 2009-2010 and 2011-2012. However the difference was not enough to be statistically significant, states the Australian Bureau of Statistics.
The “Australian” went on to say that the mean household net worth was reported as $728,000 in real terms for 2011-2012, just down from $759,000 two years prior. However the most recent value was 9% higher than the 2005-20006 figure of $667,000 and 24% above the 2003-2004 results of $585,000.
Wealth measures the extent to which the value of household assets exceeds the value of their liabilities, the Australian Bureau of Statistics stated.
Relatively a smaller number of households had higher net worth and a relatively larger number had low net worth, meaning the median, or mid-point when all households are ranked in ascending order of net worth, was substantially lower at $434,000.
Owner occupied properties were the largest asset held by households, worth $370,000 on average and accounting for 43% of household’s assets.
Mortgages were the largest household liability averaging $204,000 for owner occupied households with a mortgage.
Despite the greatest repayment of debt since the GFC our net wealth actually fell.
The asset values must have fallen faster than the debt repayment rate.
Co Founder & Chairman Chan & Naylor
Disclaimer: The above information is for general knowledge purposes only. Please take advice for your specific situation before investing in property. Every person’s personal situation is different and requires a different solution.