Friday, October 14, 2011

Average Australian Households

Thanks to high house prices and compulsory superannuation the average Australian household is much wealthier than the average American household.

We are below average with a net worth of about $A510k vs. $A720k for the average household. The average house was worth $A541k for those who owned their home outright and $A521k for those with mortgages. The average superannuation (retirement) balance was $A154k. Here we are above average at $A261k. That includes a couple of US retirement accounts though.

Our income (not discussed in this article) puts us in the top 10% or so probably of households and in the long-run I expect we will end up wealthwise in the top 20% of households who average $A2.2 million.


Pinoy Internet Hero said...

Wow what a great investment and post


Financial Independence said...

Is it a good or bad?

If your home is main investment, you will be paying higher taxes on it. The cost of living will raise.
While you still need a place to live in.

That is one of the reason I do not take property into account towards NetWorth. Mortgage - yes, but not the home..

mOOm said...

The high house prices may be exaggerate Australians' net worth. Property taxes for owner occupiers are not high in Australia. I think you should include a home in your net worth. As you say, you do have to live somewhere and if you own a house you need less income because you don't need to pay the rent. And, therefore, you need less other capital when retired. And you can sell a house and downsize to a smaller one and free up capital.