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Australians hit record wealth

Australians hit record wealth

Australians have never been wealthier, with a record $1trn held in cash and deposits, according to the latest economic data.

While household debt continues to rise, Australians are favouring putting their money into bank deposits, shares, homes and other assets that produce higher returns than the debt taken on, CommSec reports in a note.

There was $1,021.2bn in cash and deposits at the end of September, according to the Australian Bureau of Statistics (ABS), while a record $779.6bn was held in shares.

Real estate out of favour

The surprise statistic in the latest confidence survey was that real estate had its lowest favoured reading in five years at 14.3% with the 'wisest' place to stash funds named as banks, rating 29.5%, CommSec said.

"Clearly many Aussies believe that the housing market has peaked and prices are likely to soften with more stock coming on the market," CommSec said.

Who likes shares?

In the September quarter, overseas investors held a record $765.6bn of listed shares, or just over 45% of the total, indicating "no worries about our economy from abroad", CommSec said.

This vote of confidence is backed domestically, with CommSec reporting debt is being used wisely and that the record household wealth is likely to continue to support spending.

"Aussies are way out in front, confounding the doomsters," says CommSec. "Confident consumers may be more inclined to spend, especially on major items."

 

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. You should consider seeking independent financial advice before making any decision based on this information.