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Property Owners in Australia: A Snapshot

Author

Listed:
  • Marion Kohler

    (Reserve Bank of Australia)

  • Anthony Rossiter

    (Reserve Bank of Australia)

Abstract

Property represents more than half of all household assets in Australia and its share has been rising in recent years. Since most property purchases require debt financing because of the size of the purchase, property makes up a large part of both sides of households’ balance sheets. This paper uses household-level data to examine what determines the ownership of residential property and the holding of property debt by households in Australia. We examine these decisions for both owner-occupied and investment property. The results suggest that the household’s age, composition, income and wealth are important factors determining property ownership and gearing decisions. Income and wealth are found to be more influential in determining the value of property owned, while the household’s age is more influential in determining the gearing. Household composition is important for decisions on owner-occupied property, but has a limited influence on investment property decisions.

Suggested Citation

  • Marion Kohler & Anthony Rossiter, 2005. "Property Owners in Australia: A Snapshot," RBA Research Discussion Papers rdp2005-03, Reserve Bank of Australia.
  • Handle: RePEc:rba:rbardp:rdp2005-03
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    File URL: https://www.rba.gov.au/publications/rdp/2005/pdf/rdp2005-03.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Luci Ellis, 2006. "Housing and Housing Finance: The View from Australia and Beyond," RBA Research Discussion Papers rdp2006-12, Reserve Bank of Australia.
    2. Costello, Greg & Fraser, Patricia & Groenewold, Nicolaas, 2011. "House prices, non-fundamental components and interstate spillovers: The Australian experience," Journal of Banking & Finance, Elsevier, vol. 35(3), pages 653-669, March.
    3. Simon, John & Smith, Kylie & West, Tim, 2010. "Price incentives and consumer payment behaviour," Journal of Banking & Finance, Elsevier, vol. 34(8), pages 1759-1772, August.
    4. Marion Kohler & Kylie Smith, 2005. "Housing and the Household Wealth Portfolio: The Role of Location," RBA Research Discussion Papers rdp2005-10, Reserve Bank of Australia.
    5. John Simon & Tahlee Stone, 2017. "The Property Ladder after the Financial Crisis: The First Step is a Stretch but Those Who Make It Are Doing OK," RBA Research Discussion Papers rdp2017-05, Reserve Bank of Australia.
    6. Adam Stebbing & Ben Spies-Butcher, 2016. "The decline of a homeowning society? Asset-based welfare, retirement and intergenerational equity in Australia," Housing Studies, Taylor & Francis Journals, vol. 31(2), pages 190-207, March.
    7. Mark van Zijll de Jong & Grant M. Scobie, 2006. "Housing: An Analysis of Ownership and Investment Based on the Household Savings Survey," Treasury Working Paper Series 06/07, New Zealand Treasury.
    8. repec:eme:ijhmap:ijhma-07-2016-0052 is not listed on IDEAS
    9. Judith Yates, 2011. "Housing in Australia in the 2000s: On the Agenda Too Late?," RBA Annual Conference Volume,in: Hugo Gerard & Jonathan Kearns (ed.), The Australian Economy in the 2000s Reserve Bank of Australia.

    More about this item

    Keywords

    home ownership; investment property; gearing;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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