Real estate wealth reaches $6.7 trillion

Real estate has always been a favourite investment option for Australians and the latest numbers show that’s not changing.

According to Deloitte’s 12th annual Australian Mortgage Report real estate now makes up 50% of Australia’s wealth and has reached $6.7 trillion. Australian superannuation trails at $2.1 trillion and Australian listed stocks at $1.7 trillion.

The report also found, unsurprisingly, one of the key themes of 2017 would continue to be housing affordability in Sydney and Melbourne, where property prices have continued to grow for the past few years at 15.5% (Sydney) and 13.7% (Melbourne) against a downward trend for wages at 2-3% across all industries. Deloitte expects property prices will continue to grow over the next two years, but at a slower rate than in 2015 and 2016.

Negative gearing will also continue to drive conversation – something that is backed up by a new KPMG Economics report. The report found regular Australians are taking on more and more negative geared investments, leaving them in a vulnerable position should interest rates rise.

It also found that the number of repeat investors is growing, with the number of investors with two or more rental properties increasing by 34,000 or 6.2% over the two years to June 2015.

Tonight is budget night, and while Treasurer Scott Morrison has ruled out changes to negative gearing, the Government is working on a housing package to hand down. This will include reforms for housing affordability and rental stress. We’ll just have to wait and see detail these reforms will take. In the mean time, we can be assured housing in Australia will continue to dominate headlines in 2017.

What’s most important is we don’t get overwhelmed by the negative media headlines and chatter. Housing may be topical right now, but it remains a solid long-term investment option for many. If you would like some help or advice on cutting through all the talk about mortgages and house prices and how this all applies to you please give the Melbourne-based Integrity Finance Australia team a call. We are happy to chat on 03 9511 8883 or at You can also follow us on LinkedIn and Facebook.