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Where would you live if you were seriously cashed up?
One-tenth of Australians live in the most affluent suburbs.
But whereas traditionally Australia’s wealthiest areas have been confined to capital cities now, thanks to the mining boom, remote regions also have their own “rich” neighbourhoods - in mining towns of northern WA and mid-east Qld.
This info comes from the AMP.NATSEM Income and Wealth Report. The data shows definite trends. But if I was seriously wealthy I’m not sure that I’d fit any of the scenarios.
Would you up stakes if you suddenly came into money? If so, where would you build/buy your dream home?
I’d probably shift to the NSW north coast for at least half the year. But ironically the report found that the east coast of Australia, in particular northern NSW beaches (Port Macquarie and Coffs Harbour and inland) to be areas of low income.
Are you surprised to learn this? I was.
That means that those undergoing a “seachange” from
Sydney to the NSW north coast are moving into areas of lower income.
Most of the high-income areas are in capital cities. Canberra fared the best, with the fewest poorer areas and the most affluent areas of any capital city. Melbourne, Sydney and Brisbane have significant pockets of high-income areas, with buffers of moderate-income areas before the poorer areas. Adelaide has a mix of rich and poor areas. Perth has no areas in the bottom low-income bracket. Conversely Tasmania has no area in the highest income decile.
But whereas traditionally Australia’s wealthiest areas have been confined to capital cities now, thanks to the mining boom, remote regions also have their own “rich” neighbourhoods - in mining towns of northern WA and mid-east Qld.
This info comes from the AMP.NATSEM Income and Wealth Report. The data shows definite trends. But if I was seriously wealthy I’m not sure that I’d fit any of the scenarios.
Would you up stakes if you suddenly came into money? If so, where would you build/buy your dream home?
I’d probably shift to the NSW north coast for at least half the year. But ironically the report found that the east coast of Australia, in particular northern NSW beaches (Port Macquarie and Coffs Harbour and inland) to be areas of low income.
Are you surprised to learn this? I was.
That means that those undergoing a “seachange” from
Sydney to the NSW north coast are moving into areas of lower income.
Most of the high-income areas are in capital cities. Canberra fared the best, with the fewest poorer areas and the most affluent areas of any capital city. Melbourne, Sydney and Brisbane have significant pockets of high-income areas, with buffers of moderate-income areas before the poorer areas. Adelaide has a mix of rich and poor areas. Perth has no areas in the bottom low-income bracket. Conversely Tasmania has no area in the highest income decile.
Tags: goal, property, trends, wealth
Views: 0
Replies to This Discussion
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Permalink Reply by Bandwidth on -
Hello Jill
I am with you on the northern NSW coast
The statistics are interesting. Using income as a guage of wealth. Just because an area reports low income does not make it a poorer area. I don't believe documented income is a good measure of "rich" or affluence.
Consider this, if people are seriously cashed up they set there income and returns up to supply their spending needs while rolling the rest back into investments.
Income is very hard to measure unless it is PAYE. Asset rich and or cashed up individuals are going to reduce there spendable income as much as possible, for tax reasons.
If I had a large asset base I could borrow against it to meet my living needs, as long as the asset base is growing faster than my draw downs I can live well. In this case I have no income as borrowings are not income.
Most of the seriously cashed up individuals got there by being smart with what they have and get. Someone with a high pre-tax income that sensibly invests the income will on paper have a low after tax income. Someone else with the same income and a spender will have a high after tax income. Which of these 2 will become cashed up.
A sensible cashed up individual will minimise their income as income is taxed. One of the greatest lessons I learnt as an investor is the difference between income and capital money.
One of the major traps is that when reporting income based statistics eg in affortability or affluence, we use after tax income becuase it easy to gather. The more affluent the individual the greater chance they are minimising their after tax income.
If a true wealth indicator was used I feel the stats would be different as a number of the high income earners are in the city because they need to be there to support their decedant, rather than affluent lifestyle.
Norther Rivers NSW for me
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Permalink Reply by Kbot on -
I'd go to an island in QLD - Hamilton, Great Keppel, one of those. Or the QLD coastline. Actually a vineyard in Margaret River would be tempting too ;)
I wonder if these "rich" areas will change as the internet age allows more and more people to work remotely - when you have the choice of battling your way through traffic to work in a box in the city or work from a seaside location, there's no contest. It's just a matter of convincing management that this is a viable option - which I think is inevitable - and then the shift will move from being a trickle to a tidal wave! OK, may have gone a bit far there :) But I do think that the shift towards more people working from home is bound to have an impact on where we choose to live.
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Permalink Reply by Bandwidth on
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Having had full network access from home it was great as i could travel to and from work less and when i di it was outside peak hours. The disadvantage is the reduced social contact.
In the States they have community "offices" in local areas where companies hire work facilities that are on a virtual network back to the head office. These facilities provide the infrastructure such as mailrooms, faxing, printers, meeting rooms etc as well as childcare and social interactions. The greatest hurdle to overcome is the micro manage and control mentality of some managers.
As the boomers move on I think companies will become more flexible such that they maintain access to the knowledge and skills. This will then flow on to the rest of the workforce.
The Margaret River comment reminds me of something I heard a number of years ago.
The highest number of registered unemployed bank managers in Australia is in the Margaret River.
The highest number of registered unemployed IT people in Australia is in Airlie Beach
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Permalink Reply by Manish Dev on -
:) The stats make sense! I can just see all the ex-bank managers boozing up their bonuses in the vineyards!
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Permalink Reply by Bandwidth on
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Believe me a large number of IT salaries would make bank managers jealous. The people that make the big bucks in the bank are limited.
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Permalink Reply by JeffK on -
Hi Jill, what about the other half of the year? ;)
Do you have a link to more info on this report?
JFK
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Permalink Reply by Jill Fraser-FatCat journalist on -
Hi JeffK,
Thanks for your questions.
The info is based on Consensus data 2001 - 2006 and doesn't apply to one part of any year.
It's the 20th AMP.NATSEM Income and Wealth Report, Advance
Australia Fair? issued July 2008. It takes a critical look at trends in income,
unemployment, immigration and other socio-economic factors
for different geographic regions of Australia.
You'll find a full copy of the report on www.canberra.edu.au/centres/natsem/
Cheers,
Jill
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Permalink Reply by Bandwidth on
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Hello Jill
Thanks for the link to that site
An observation from the housing report on the site
"Income has failed to match the pace of growing house prices, which jumped 400 per cent between 1986 and 2007"
The general concensus is that housing grows at 8% per annum which is doubling every 10 Years so "jumping" 400% in 21 years is not very new information ;-)
Thoughts ?
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Permalink Reply by Jill Fraser-FatCat journalist on
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To be honest, Bandwidth, I found quite a bit of the data passé, which is why I only went with the issue of where the affluent live.
However the fact that the report noted that incomes have failed to match the pace of growing house prices since the mid-80s - house prices jumped 400 per cent between 1986 and 2007 while wages increased 120 per cent – I found insightful.. and I note that several media outlets headlined this fact, which indicates that they too found it to be an interesting fact.
Not everyone has your knowledge of the housing situation.. You sound very well versed on the subject.
Cheers and thanks a lot for your comments.
Cheers,
Jill
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Permalink Reply by Bandwidth on
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Thanks for the compliment
I think if you go back over time that this gap is quite consistent. This is one of the reasons for suburban sprawl, as people move futher away from city prices.
My view is that media outlets will play on the pain point of the day :-0 It sells press.
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Permalink Reply by JeffK on
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Hi Jill, thanks for that.
When I said "what about the other half of the year?" I meant for you - where would you live the other half of the year? You mentioned that you'd probably shift to the north coast of NSW for at least half of the year. :)
JFK
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Permalink Reply by Jill Fraser-FatCat journalist on
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Aha.. sorry, JeffK.. I'd probably remain in Melbourne.. I enjoy the culture here but can't tolerate the cold any longer.. Brrrrr!!!
How bout you??
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