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Australians Still See Homeownership as the Great Australian Dream

Announcement posted by Smartline Rockingham 17 Mar 2016

Mortgage brokers in Rockingham reveal why, despite market ups and downs, Australians are still investing as much of their household wealth in their homes as they did 20 years ago.
Rockingham, WA, 17 March 2016 - The Australian economy has had numerous ups and downs over the last 25 years. Upturns, downturns, booms, busts and even a Global Financial Crisis: it can all be confusing for someone who works hard for a living and just wants to buy their first house.

Despite all of the financial uncertainty, however, Australians are investing the same percentage of their household wealth in their homes as they did in 1995: just over 50%.

2015: The Statistics

Recently, the CoreLogic Housing Market and Economic Update for February 2016 was released. The study summarised Australian wealth for 2015. According to the study, $6.4 trillion of Australian wealth is invested in residential property. The next closest was superannuation, in which $2.3 trillion is invested. $1.6 trillion is invested in Australian listed stocks and $0.7 trillion in commercial real estate.

By household, Australians have 52.1% of their household wealth invested in their homes. Supers come in second at 21%.

A Historical Comparison

In 1995, just over half of Australian household wealth was in residential property. In 2005, just over half of Australian household wealth was in residential property. Now, as 2016 begins, just over half of Australian household wealth is invested in residential property.

Since 1990, Australia has seen the RBA cash interest rate go from a high of 17.5% to the current record low of 2.0%. There has been a mining boom and a Global Financial Crisis (GFC). Housing prices have risen on the whole but it hasn’t always been consistent.

No matter what the economy has done, though, Australians have been consistent in chasing the “Great Australian Dream” of homeownership.

Mortgage Broker in Rockingham Reveals Why

Justin Smith is the principal mortgage broker at Smartline Rockingham. He has more than 28 years of experience in the finance industry. Due to his industry experience and keen observational skills, Mr Smith is uniquely qualified to explain why Australians are so consistent in their pursuit of the “Great Australian Dream,” no matter what the economy is doing. According to Mr Smith:

“I believe there are two reasons Australians have been so consistent in our home investment percentages, despite the many fluctuations in the economy. The emotional reason is that it is deeply ingrained in us to want our own homes. We value our individuality so much and nothing says ‘individuality’ like your own home. But there is a financial reason that is even more important: a home is its own buffer against the twists and turns of the economy. As long as you can make your home loan payments during tough times, you are almost always going to profit on your home, as long as you hold it long enough and keep it properly maintained.”

Smartline Rockingham is a firm of mortgage brokers serving the Rockingham area. They have been the leading mortgage broker in Rockingham since 1999. They have access to the credit products of 28 different lenders and are great at determining which lender can provide the right loan for any particular client. To learn more or to apply for a home loan, call Smartline Rockingham today on 1300 958 730 or visit their website: http://www.mortgagebrokersrockingham.com.au/