A Credit Suisse global wealth report suggests Australians are amongst the wealthiest people in the world.

It found the median wealth per adult in Australia to be $258,000; more than in any other country.

But rather than being a nation of high earners, it seems this median wealth is attributed to the Aussie love affair with home ownership.

“It has certainly been a huge part of the Australian tradition,” said Brian White, Chairman of the Ray White real estate group. “Approximately 30 per cent of sales or transactions that take place are to people who see property as an investment.”

The property market is considered a fairly stable investment in Australia, making it very attractive to overseas and domestic investors alike.

Many see home ownership as a superior investment to superannuation, regardless of the incentives awarded by the federal government to invest in super.

And who could blame them?

Brian White. Image: www.tompanos.com.au

Brian White. Image: www.tompanos.com.au

The recent GFC has shown just how vulnerable the superannuation funds are, regardless of their size.

Supporters of superannuation point to the floods of 2012 in Brisbane and Lockyer valley. These floods were to home ownership what the GFC was to the stockmarket: Both devastating, both unpredictable.

But as the world grows increasingly complex it also grows increasingly fragile. When financial systems grow larger they become vulnerable in ways they had never imagined. At least with homes and natural disasters the risks are always the same.

About The Author

Someone you can depend on to respect you and care for your dog. Let me help you give your dog the life it deserves.

Leave a Reply

Your email address will not be published.