This has just popped up about the distribution of wealth in Australia;
http://finance.news.com.au/story/0,10166,15630898-462,00.html
It seems that it’s not so much what you earn but what you do with the money that you do earn?
thanks for post. Amazing to see these stats sometimes and gives you some overall perspective which is helpfull.
Keep these coming as you find them!
Broken link… did anyone save a copy?
Thanks for that Surrey, my link has expired. I did test it when I posted the topic, but now it seems to be lost in cyberspace…
Very interesting,
it makes you realize how hard it will be for our younger generation (under 25’s) to partake in part of this nations wealth, (unless they inherit it). Given that a large part of people wealth is in Property i would assume that these people purchsed in at a time that real estae was a lot more affordable.
regards westan
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Interesting article. As a single mum of 4, aged 26 and just bought my second house, (to rent out the first) it makes me feel all the prouder to be beating the odds.
Originally posted by westan:it makes you realize how hard it will be for our younger generation (under 25’s) to partake in part of this nations wealth, (unless they inherit it).
On the other hand, the over 25s (and baby boomers in particular) may discover that the fortunes they have reaped from property investing are largely illusory, the under 25s find that house prices have returned to their historic trend (as they always have in the past), and the intergenerational rift will heal.
Cheers, F.[cowboy2]Originally posted by westan:it makes you realize how hard it will be for our younger generation (under 25’s) to partake in part of this nations wealth, (unless they inherit it). Given that a large part of people wealth is in Property i would assume that these people purchsed in at a time that real estae was a lot more affordable.
I’d call that a big assumption. When I was first buying (and I am not yet 55) the cheapest house in my city was $65,000 and the second cheapest was $72,000 (that was the one I bought). My salary was maybe $20,000 p.a. and interest rates were 11% plus you needed a 10 year savings record to be given a loan by a bank. Building societies existed but charged an extra 1-2%. Within 6 years interest rates had reached 18%.
More generally, there are statements that housing is as unaffordable as it’s ever been. When you read the article, it says that housing has reached its lowest affordability for 20 years. What that actually means is that when I and others my age bought, housing was less affordable than even in the days of 18% interest!
On the other hand, the over 25s (and baby boomers in particular) may discover that the fortunes they have reaped from property investing are largely illusory, the under 25s find that house prices have returned to their historic trend (as they always have in the past), and the intergenerational rift will heal.Hi Foundation,
You lost me a bit there. How will the profits become illusory!
Perhaps there will be a flood of cheap family houses as the empty nesters move into smaller retirement housing and people have less children.
One person’s excess bedrooms is another’s home office, media room, dark room, hobby room, guest accomodation, storage room, parent sanctuary…
4 bedroom houses will always have a demand even if you have to re-label them as 2 bedroom + home theatre + study… It’s the size and space that attract money, it’s the exchange of abstract resource for leveragable resource that makes us wealth.
[biggrin]
Originally posted by Don and Liz:
Hi Foundation,You lost me a bit there. How will the profits become illusory!
Most of the real estate “profit” from the last 5 years or so exists only as paper / equity wealth. Unless the house/s are sold, the “profit” can just evaporate (ie, it’s an illusion). Unfortunately for many, debt is much harder to shake.
Regards, F.[cowboy2]Originally posted by surreyhughes19905:One person’s excess bedrooms is another’s home office, media room, dark room, hobby room, guest accomodation, storage room, parent sanctuary…
4 bedroom houses will always have a demand even if you have to re-label them as 2 bedroom + home theatre + study… It’s the size and space that attract money, it’s the exchange of abstract resource for leveragable resource that makes us wealth.
[biggrin]
we have 6 ” Bedrooms ” one is a study come office and another is an X-Box room .
Parent retreat …. [baaa][biggrin]
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