Graph of the week: Household Assets
This graph shows the importance of property in the wealth of Australians.
* Most wealth is tied up in the family home.
* Superannuation is in second place which would also include a sizeable component of property investment, directly through SMSF’s or indirectly through the share market.
* Other financial assets would include shares and managed funds.
* Australia has a lot of direct property investors, the ‘other property’ includes holiday and investment properties.
The mean (average) household networth in Australia is now over over 1 million dollars at $1,042,000 with approximately half of this worth being in the family home.
The median (half above and half below) household networth is $579,200
The large gap between ‘median’ and ‘mean’ has increased which is reflecting that the most fortunate part of our economy has done very well, relatively, in recent years.
Property of the week: 30 Ifield Street, McDowall
* Quality block and solid 1980’s, 3 bed 2 bath house
* High quality street location and family friendly suburb with good schools
* Double cavity brick construction with dual living
* 556m block of land
* 10k from the CBD
* Originally listed at offers over 775k when it popped up on our radar
* Pricing was updated to 825k+ then ‘potentially’ in the $900’s
* 120 groups inspected and there were 30+ offers to purchase
Sold: $1,050,000 March 2024.
The Brisbane market has powered upward in the first quarter of the year.
This house was last sold for $82,500 in 1986 = a 6.91% p.a growth rate compounding over 38 years.
A lot of the skill in investing is holding onto quality assets for as long as you possibly can.
Quotes I’m pondering
Seneca the younger. 4BC – 65AD, Seneca was a roman philosopher and statesmen, and also tragically for himself a mentor to the Emperor Nero. Quotes are from the superb book ‘Letters from a Stoic’
“It is not that we have a short time to live, but that we waste a lot of it. Life is long enough, and a sufficiently generous amount has been given to us for the highest achievements if it were all well invested.”
“We are more often frightened than hurt; and we suffer more from imagination than from reality.”
“True happiness is to enjoy the present, without anxious dependence upon the future, not to amuse ourselves with either hopes or fears but to rest satisfied with what we have, which is sufficient, for he that is so wants nothing. The greatest blessings of mankind are within us and within our reach. A wise man is content with his lot, whatever it may be, without wishing for what he has not.”
Thank you investing your time to read this newsletter and I hope you are enjoying a wonderful Easter holiday.
