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Hi Everyone,
I just accessed the August CoreLogic Housing Market and Economic Update report, and I found one snapshot interesting – and a little surprising – in a good way. (its attached for your reference)
Key Points:
The Australian Residential Property Market is now worth 7.2 Trillion
That is 3.13 times greater than what is currently held in Australian Superannuation – which has a worth of 2.3 Trillion
Australian Listed Stocks are worth 1.8 Trillion
Commercial Real Estate is worth about half that at0.958 Trillion
But what surprised me most (until I considered it some more) was that the outstanding mortgage debt is “only” 1.68 Trillion.
That equates to about a 23.3% debt to value ratio, so not all that scary.
It then got me thinking that the vast majority of this wealth must be from folk who bought 20+ yrs ago. (Certainly not within the last 10 yrs in Perth!)
So the old Chinese proverb rings true…
The best time to plant an oak tree is 20 yrs ago….and the second-best time is now!
So if you know anyone planning on living another 20 yrs…..property still seems a good way to go 😉
Mahi Masud | Director
T 1800 55 21 63 | F 1800 73 81 90 | M 0449 608 412 | E mahi@championbroker.com.au | W championbroker.com.au
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