The rich are getting richer – wealth inequality in Australia

The rich can’t keep getting richer forever – can they?

Well…Australia has long been thought of as the land of the middle class but new research comparing the upper, middle, and lower rungs of the nation’s wealth and income show that’s not really the case.

The richest tenth of households owns almost half Australia’s private wealth followed by a “comfortable middle” of 30 per cent with 38 per cent, leaving the lowest 60 per cent – who tend to be younger – with 16 per cent of household wealth.

The report Inequality in Australia 2020, Part 2: Who is affected and why shows the average net worth of the richest ten per cent reached $4.75 million in 2017-18 and owns 46 per cent of household wealth which is underpinned by property assets, superannuation, shares and business investments.

The next wealth rung – the comfortable middle – had an average household net worth of just under $1.3 million. About half of that group’s wealth is tied up in their own home although investment properties (with a net value of $104,000 on average) and superannuation also make substantial contributions.

The bottom 60 per cent of Australian households had an average wealth of $277,000, with owner-occupied housing and superannuation the biggest assets.

---

YOU MAY ALSO BE INTERESTED IN READING: Australia’s Income and Wealth Distribution

---

Some other interesting findings:

• Older people have 50% more wealth than those aged under 65, mainly due to the value of their homes. The average wealth in households with a reference person aged 65 years and over was $1.38 million – 1.5 times that of younger age groups (with an average of $904,000).
• Most wealth is in owner-occupied housing and superannuation, but shares and investment property are more concentrated at the top.
• High wealth levels are associated with high income and saving levels through working life.
• Inheritances go disproportionately to those with more wealth already.

Source of graphic: SMH

Australia’s billionaires became 50% richer during the pandemic

The combined wealth of Australian billionaires has risen by more than 50% over the past year, new figures show, prompting concerns that the pandemic-triggered recession has “turbocharged” the gap between rich and poor.

The combined net worth of Australia’s billionaires dropped in March – when Covid-19 restrictions ramped up – before rebounding strongly and increasing throughout the course of the year, according to the Bloomberg Billionaires Index.

The combined worth of Australian billionaires was assessed to be 52.4% higher this week than at the same time last December.

By comparison, billionaires in the US and UK recorded an increase of about 25% over the same period, the Bloomberg index shows.

Now is the time to take advantage of the opportunities the current property markets are offering.

Sure the markets are moving on, but not all properties are going to increase in value. Now, more than ever, correct property selection will be critical.

You can trust the team at Metropole to provide you with direction, guidance, and results.

Whether you’re a beginner or an experienced investor, at times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s exactly what you get from the multi-award-winning team at Metropole.

We help our clients grow, protect and pass on their wealth through a range of services including:

1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now! Click here to learn more
2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $4Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney, and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment-grade property.  Click here to learn how we can help you.
3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
4. Property Management – Our stress-free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years, and our properties lease 10 days faster than the market average.

from Property UpdateProperty Update https://propertyupdate.com.au/the-rich-are-getting-richer-wealth-inequality-in-australia/