another article on household debt....for the young'unsIn an...

  1. 17,117 Posts.
    another article on household debt....for the young'uns

    In an address to the institute's Public Economics Forum in Canberra today, he will review income data which shows wealthier households, those with the most capacity to get themselves out of financial strife, hold the bulk of the nation's private debt.

    The median household had debts that amounted to just 8 per cent of assets, meaning that in the event of a sudden drop in income the repayment obligations, could, in the worst case scenario, be avoided by selling at least part of the household wealth."

    http://www.news.com.au/business/mone...017313,00.html

    and then this article....about the wealthier property owners....that is people owning a property that is not their PPOR...only about 6.4% of all homeowners also hold one other property.....
    but then we knew all of this anyway....there are not many compared to the total population...and even less hold multiple IP's...I recall seeing figures of less than 20,000 people or .001 of the population

    Investor households across all age groups
    tended to have higher incomes than their noninvestor
    counterparts (Graph 2). In line with
    this, 71 per cent of investors were in the top
    two household income quintiles and the
    propensity to own an investment property
    increased at higher incomes, with households
    in the highest quintile being almost three times
    more likely to own an investment property
    than households in the middle quintile
    (Graph 3). Associated with their higher
    income, investor households were much more
    likely to be working than their non-investor
    counterparts, and especially to be
    self-employed.
    Not surprisingly, investor households were
    also wealthier than non-investor households,
    partly because higher wealth reflects property
    ownership (Graph 2). More than half of all
    investor households were in the quintile with
    the highest net wealth, while only 2 per cent
    were in the least wealthy quintile (Graph 3).
    A conventional view of property ownership
    is that households tend to purchase their own
    home before buying an investment property.
    The HILDA Survey provides some support
    for this view, with 85 per cent of investor
    households also owning their own home,
    considerably more than the 68 per cent of
    home owners in the general population. Still,
    at 15 per cent, a surprisingly large share of
    investors were households who rented, but
    owned a residential property which they did
    not normally reside in. The latter group tended
    to be younger than those investors who also
    owned their own home: the median age of
    renter investors was 39 years, versus 49 years
    for owner-occupier investors

    http://www.rba.gov.au/publicationsandresearch/bulletin/bu_may04/bu_0504_2.pdf
 
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