Research by Aussie Home Loans and CoreLogic RP Data found that home owners with an Aussie mortgage in either city or regional areas have accumulated 48.4 per cent equity in their properties on average, equating to $242,642.
“Our data confirms that property can be a great wealth creator for owners, especially when compared with the current correction being experienced in the share market,” Mr Symond said.
“I believe the best investment both for security and lifestyle is still real estate and I see no reason why this will change over the next decade, especially in view of the lower interest rate climate, lack of housing supply in the major cities and continuing population growth.
“As long as owners are covered comfortably with their mortgage repayments, the equity they have built up in their homes allows them to kick some personal financial goals, like education for their children or renovation.”
New South Wales and Victoria took out the top spots for the average level of home equity at 56.6 per cent and 49.3 per cent respectively.
This was followed by the ACT at 42.8 per cent, Queensland at 39.9 per cent and South Australia at 39.4 per cent.
Average home equity levels were lowest in Western Australia at 38.5 per cent, the Northern Territory at 36.9 per cent and Tasmania at 32.7 per cent.
Among the capital cities, the average level of home equity was highest in Sydney and Melbourne at 60.1 per cent and 50.7 per cent respectively.
Canberra also recorded high average levels of home equity at 42.8 per cent, followed by Brisbane at 41.4 per cent and Adelaide at 39.4 per cent.
The lower equity levels recorded were in Perth at 39.0 per cent, Darwin at 37.0 per cent and Hobart at 35.5 per cent.
“The longer a property has been owned, the more time owners have had to experience price growth and reduce their mortgages,” CoreLogic RP Data research director Tim Lawless said.
“The figures show that areas close to the CBDs have generally performed better as the population becomes more compressed with more medium to high density dwellings.”
The research revealed only two council areas – Whitehorse in Melbourne and Bankstown in Sydney – in the top 20 list of equity generators across Australia have a median property price under $1 million.
As published on recondaily.com, Friday, 18 March 2016 | Emma Ryan, www.mortgagebusiness.com.au