Debt defies household wealth surge

By |

Household wealth rose in the March quarter, but falling market prices meant mortgage debt outpaced housing values, new data said.

Household wealth in the country increased by 0.2% to $10.24trn for the March quarter, according to new data from the Australian Bureau of Statistics (ABS). This followed a 2.1% decline during the December quarter.

However, real estate losses offset the rise in household wealth. Figures showed a fifth consecutive residential real estate decline, resulting to weakened household wealth per person by $1,500 to $404,566.

The ratio of mortgage debt to residential assets also increased from 28.1% in the previous quarter, to 29%. This meant mortgage debt outgrew the value of household-owned residential real estate.

The ABS figures also showed that Australia’s national investment fell from $22.2bn during the quarter to $100.9bn, following a record high of $123.1bn in the December quarter.

Australia continued to borrow from overseas to fund investment, borrowing $1.0 billion from non-residents during the March quarter as national investment exceeded national saving.

In seasonally adjusted terms, Australia has been a net borrower from overseas since the September quarter of 1975.

 

Top Suburbs : stafford hts , st kilda west , wentworthville , keperra , darlington

SHARE

Get help with your investment property



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here