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Measuring Wealth in Australia - We Won Lotto

Discussion in 'General Property Chat' started by MTR, 12th Aug, 2016.

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  1. MTR

    MTR Well-Known Member Premium Member

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    For those interested .......


    PROPERTY POWER


    The ABS data shows that property is the biggest component of household wealth, worth almost 60 per cent of Australians’ total assets.


    GLOBAL LEADERS

    Reports by international investment groups in recent years have ranked Australia at the top of the global wealth tree.

    The 2014 Credit Suisse Global Wealth Databook says each Australian adult has median wealth in US dollars of $225,565, well ahead of every nation including Italy ($142,296), France ($140,368), Britain ($130,590), Germany ($54,090), the US ($53,352) and China ($7033).

    “We complain about the cost of living but Australia’s wealth, compared to the rest of the world, is phenomenal,” Mr McCrindle said.

    Wise Owl Financial adviser Allan Ward said Australians overall were “incredibly blessed” compared with other countries.

    We have won the birth lottery by living in Australia. Wealth-wise, we are way up the tip of the triangle,” he said.

    OUR MINDSET

    Mr Ward, who has studied behavioural finance, said many people incorrectly believed they were poorer than their peers.

    “When it comes to talking about money among friends, people are never 100 per cent open. They talk about the good investments and not the bad ones,” he said.

    Mr McCrindle said Australians often forgot that they were gradually getting wealthier. “We have got short-term memories and that’s why we don’t appreciate what we have got,” he said.

    However, many peoples’ dreams of a wealthy retirement might need to be revised, he warned.

    “People are not downsizing to that pensioner mindset of a generation ago — we forget our parents’ generation and grandparents’ generation and forget what life was like.”

    SUPER’S SLICE

    The new ABS data shows superannuation is becoming a bigger proportion of household wealth, ranking behind only property. However, many Australians still don’t see super as their own money even though it is.

    Households have an average $177,000 in superannuation savings, but for people aged 55-64 it’s almost $500,000.

    HOW MUCH IS ENOUGH?

    “The right question is, for the life I want to lead, am I at the right spot? Everybody has such different goals and people are often either overly optimistic or overly pessimistic.”

    Mr Canion said how much you might need for a comfortable future and retirement depended on what you lived on now. He said as a guide, a 55-year-old needed 17 times their annual income in savings, a 60-year-old needed 15 times and a 65-year-old needed 13 times.

    “That’s far more meaningful than saying you have to have $1 million when you retire.”

    What are we Worth?

    NSW $495,300
    VIC $506,000
    QLD $369,300
    SA $411,700
    WA $479,000
    TAS $383,000
    NT $410,200
    ACT $640,600
    AUSTRALIA $461,500

    (ABS)


    ANTHONY KEANE, Personal finance writer, News Corp Australia Network
    September 11, 2015 10:00pm
     
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  2. MTR

    MTR Well-Known Member Premium Member

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    We live in an amazing country and we are very lucky have such a wonderful lifestyle, I hope we can continue to do so.....


    I was chatting to my niece who moved to Singapore with her husband and children.

    Her husband took up a position in Singapore to good to refuse CEO of a company, no idea what he earns.

    I was gobsmacked to find out that they pay $65,000 per child for education, this is primary school.

    The apartment they rent is worth around $4,000,000 and very small. I think the rent is around $9000 per month.

    I don't know what medical cover is? I do know that buying motor vehicle is very expensive compared to Australia.

    She will eventually be sending her children back to Australia to attend University because it will be far too costly in Singapore.
     
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  3. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Australia is without a doubt one of the best, easiest and safest places in the world to build wealth and live an amazing lifestyle in a peaceful place. Opportunity is literally everywhere for those who want to reach out and grab it. It's just many don't.
     
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  4. MTR

    MTR Well-Known Member Premium Member

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    .... yes agree........but I think the point is also you can be an average Jill/Joe, not necessarily an investor and still have an amazing lifestyle in Australia.

    The average person now has $500K in super, it was only a few years ago and it was $300K, compared to world standards quality of life here is up there.
     
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  5. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Oh I completely agree with you on this. Australia for me is the best place in the world to live without a doubt, financially wealthy or not.
     
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  6. jim1964

    jim1964 Well-Known Member Premium Member

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  7. devank

    devank Look, lets just get on with this, ok? Premium Member

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    I think that's for the international school. Public schools won't cost much but kids will be tortured!
    We had an opportunity to work in Singapore practically doubling our HH income. But with 3 kids, most would have been gone in school fees.
     
  8. Casteller

    Casteller Well-Known Member

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    Yes Australia is great but one downside is the very high cost of living, so you have to work longer/harder until you are able to slow down. In Spain I was able to stop working, I couldn´t do that in the last 3 cities I lived in (Sydney, London, Zurich).

    Also the Islamic-style alcohol laws in Australia are pretty annoying when you´re used to the freedom of Europe. Can´t even have a beer on the beach without getting fined, that sucks.
     
  9. Mac Fields

    Mac Fields Well-Known Member

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  10. HUGH72

    HUGH72 Well-Known Member

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    I agree Australia is over regulated.
    But did you or more to the point would you be able to become wealthy in Spain? Do you see it more as a place to spend your funds or build them?
     
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  11. EN710

    EN710 Well-Known Member

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    This is probably the main difference. There's certain standard of living in Australia and you still can have a great lifestyle without being 'rich'. And the beach, the nature... one of the best.
    Third world country also have their own attractiveness though (exept the heat ... can't handle the heat). I'm not sure how to describe it, but i suppose i see a lot of "street smarts", people make do with what they have. Food are more delicious :D and they tend to be less hygienic... but i think it helps with immune system in moderation. Hubby and I can eat the same thing where he can a gastro while I'm just happy healthy :p. There are so many people, labour are cheap. Things can be custom made and doesn't break your bank (at least in oz dollar) - custom made sofa, fences, table, pair of jeans etc.
     
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  12. Angel

    Angel Well-Known Member

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    Nah, I personally don't know of anyone with $500K in Super, We are in that 55+ age bracket and have way way way less than that. Very few people our age ever had Super until we were older.
     
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  13. MTR

    MTR Well-Known Member Premium Member

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    yes its International School, company pays for this.

    One child is actually suffering from depression, apparently said he wanted to throw himself off the balcony. No amount of money is worth it. My niece is pretty calm about it all.
     
  14. MTR

    MTR Well-Known Member Premium Member

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    I think it also depends where you want to live in Australia, there are many cheaper options for example in QLD, I mean paradise;)
     
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  15. Casteller

    Casteller Well-Known Member

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    No generally its a place to spend funds rather than build them, salaries are low (with some notable exceptions, conveyancers and air traffic controllers are very wealthy here, highest paid in the world). Though there is a property speculation culture like Australia which people used to make money on.
    I think that is the trick.. make money in an expensive place then go somewhere cheaper.
     
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  16. big max

    big max Well-Known Member

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    I spend time in Singapore. These costs are about right. And cars are crazy expensive. Like 4x Australian prices. And food. And alcohol. Terrible.
     
  17. EN710

    EN710 Well-Known Member

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    ... What did you eat there? Food are cheaper in general except western food
     
  18. joel

    joel Well-Known Member

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    Funny things, those averages.
    I earn an average wage and have 14K in super. Where's the remaining $486K gonna come from?
     
  19. HUGH72

    HUGH72 Well-Known Member

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    Maybe because you are not a couple over 55?:oops::p
     
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  20. Casteller

    Casteller Well-Known Member

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    In the hawker food markets some great cheap food, and a big bottle of Tiger beer only S$5, cheaper than an Australian pub. But my sister bought a small car there for 100K or something there (or her company did..)