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Old 12-28-2018, 07:08 PM
 
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Quote:
Originally Posted by MarisaMay View Post
Australian superannuation is similar to the 401K and it is compulsory for all employers to pay 9.5% of salary into a fund nominated by the employee. Similarly many people add to it as it is a tax advantage to do so. It can be accessed at 60 and at the moment unlimited lump sums or income streams can be pulled out, mostly tax free.

Also many Australians own investment properties because the tax advantages have in the past been worthwhile. Additionally we do not have inheritance tax so many investment and owner occupied properties are being passed down to younger generations.
Australia also attracts many rich immigrants from Asia, especially China. They help to boost the real estate market too. America has many immigrants from Latin America and usually they do not bring much wealth to the country.
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Old 12-28-2018, 07:13 PM
 
Location: Brisbane
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Quote:
Originally Posted by Tall Traveler View Post
One thing that differentiates countries like Australia with a higher mean but lower average wealth than the USA is that most of the wealth in Australia is in housing....values have escalated so much that everyone that bought a house in Aussie when they were younger now have a high wealth creating a bump in median wealth. USA wealth is mostly in investment such as the 401K which you can spend if you like and are of age.
In dollar terms Australia has the 4th biggest pool of pension assets in the world, as a % of gdp its also one of the highest in the world, the two really go hand in hand.
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Old 12-28-2018, 07:21 PM
 
Location: London, UK
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Quote:
Originally Posted by Bettafish View Post
Australia also attracts many rich immigrants from Asia, especially China. They help to boost the real estate market too. America has many immigrants from Latin America and usually they do not bring much wealth to the country.
Depends what nations and tell that to Florida.
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Old 12-28-2018, 09:18 PM
 
Location: Taipei, Taiwan
6,608 posts, read 4,807,255 times
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Quote:
Originally Posted by Bettafish View Post
About half of Chinese population are still peasants, so the figure is not bad among developing countries.
Probably, but their report has always been a bit iffy. For example I do not believe that China's median wealth is that much higher than Russia's. Twice as high maybe, but 6 times as high is pretty extreme when half of the Chinese population are still peasants.

Quote:
For America, they are known for "spending all". 70% Americans do not have enough savings to cover one month's bills.
It still says a lot about the inequality. When the 50th percentile of the population own merely a tiny fraction of the average, something is seriously wrong.

Quote:
Originally Posted by Tall Traveler View Post
One thing that differentiates countries like Australia with a higher mean but lower average wealth than the USA is that most of the wealth in Australia is in housing....values have escalated so much that everyone that bought a house in Aussie when they were younger now have a high wealth creating a bump in median wealth. USA wealth is mostly in investment such as the 401K which you can spend if you like and are of age.
Real asset does account for quite a high percentage in Australia's wealth, but it's not "most". More like half.
https://en.wikipedia.org/wiki/List_o...ets_per_capita.
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Old 12-28-2018, 09:40 PM
 
Location: Canada
4,400 posts, read 4,065,147 times
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Quote:
Originally Posted by Pueblofuerte View Post
Depends what nations and tell that to Florida.


https://www.youtube.com/watch?v=vT8OU5WtfkQ
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Old 12-28-2018, 09:52 PM
 
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Quote:
Originally Posted by Greysholic View Post
Probably, but their report has always been a bit iffy. For example I do not believe that China's median wealth is that much higher than Russia's. Twice as high maybe, but 6 times as high is pretty extreme when half of the Chinese population are still peasants.
Most young "peasants" actually work in the cities, either part time or full time. They are not rich but are not far behind ordinary city residents. In coastal provinces, many of them run businesses too. Moreover, the government pays them a lot of relocation fees, in certain conditions. The "peasants" in suburbs of big cities are usually quite wealthy, although those in remote mountains can be extremely poor.
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Old 12-28-2018, 10:33 PM
 
Location: Cebu, Philippines
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Here are the actual numbers https://en.wikipedia.org/wiki/List_o...alth_per_adult

Even more revealing is the comparison of the median to the mean. Kazakhstan has a ratio of about 35:1, which means half the people have only 1/35 of the wealth. Belgium, Malta and the former Yugoslav republics have ratios better than 2:1.
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Old Yesterday, 01:04 AM
Status: "Free Bird - Eagle has landed" (set 7 hours ago)
 
Location: Washington State
16,132 posts, read 8,406,152 times
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Quote:
Originally Posted by MarisaMay View Post
Australian superannuation is similar to the 401K and it is compulsory for all employers to pay 9.5% of salary into a fund nominated by the employee. Similarly many people add to it as it is a tax advantage to do so. It can be accessed at 60 and at the moment unlimited lump sums or income streams can be pulled out, mostly tax free.

Also many Australians own investment properties because the tax advantages have in the past been worthwhile. Additionally we do not have inheritance tax so many investment and owner occupied properties are being passed down to younger generations.
Sounds like a nice program....still USA financial wealth per capita is more than 3 times higher than the average Australian (see link below). I saw another report that the equity Aussies have in their houses is more than 3 times the USA average. If you go through a housing debacle like we had in 2007/2009, going to be ugly.


OECD Better Life Index
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Old Yesterday, 01:47 AM
 
Location: Australia
479 posts, read 162,500 times
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Quote:
Originally Posted by Tall Traveler View Post
Sounds like a nice program....still USA financial wealth per capita is more than 3 times higher than the average Australian (see link below). I saw another report that the equity Aussies have in their houses is more than 3 times the USA average. If you go through a housing debacle like we had in 2007/2009, going to be ugly.


OECD Better Life Index
Look, the figures move around according to the current exchange rate so it is hard to make comparisons. Also keep in mind that our superannuation may or may not be invested heavily in equities. We choose the mix of investment products we want and there can be a huge variation.

Yes, our housing in the main cities is very expensive and the majority of people live in these cities. At the moment the prices are dropping, as they are in other key cities around the world, partly because of changes of policy in China. However, even in 2007 and 2008, we did not have the default issues of the US because of much more secure loans. If we default on our home loans, every asset we have can be used to pay the debt. The default rate is comparatively low as people without assets find it difficult to borrow. The conditions are even tighter now.

We have had, I think, 27 years of economic growth as we did not go into recession in 2008. I do not believe that housing will collapse because, at the end of the day, people will have to live somewhere and renters continue to pay the rent. In 2008 we did see massive drops in the value of our super and other financial products, the financial world now being so global. If anything this has encouraged investment in real estate.

People keep eqiuity in their principal place of residence partly because it is tax sheltered, unlike investment property. Then theoretically a Sydney resident can sell a typical house worth perhaps $US800,000 and buy a retirement place down the coast for half that.
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Old Yesterday, 02:37 AM
 
Location: Brisbane
3,386 posts, read 5,258,621 times
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Quote:
Originally Posted by MarisaMay View Post
Look, the figures move around according to the current exchange rate so it is hard to make comparisons. Also keep in mind that our superannuation may or may not be invested heavily in equities. We choose the mix of investment products we want and there can be a huge variation.

Yes, our housing in the main cities is very expensive and the majority of people live in these cities. At the moment the prices are dropping, as they are in other key cities around the world, partly because of changes of policy in China. However, even in 2007 and 2008, we did not have the default issues of the US because of much more secure loans. If we default on our home loans, every asset we have can be used to pay the debt. The default rate is comparatively low as people without assets find it difficult to borrow. The conditions are even tighter now.

We have had, I think, 27 years of economic growth as we did not go into recession in 2008. I do not believe that housing will collapse because, at the end of the day, people will have to live somewhere and renters continue to pay the rent. In 2008 we did see massive drops in the value of our super and other financial products, the financial world now being so global. If anything this has encouraged investment in real estate.

People keep eqiuity in their principal place of residence partly because it is tax sheltered, unlike investment property. Then theoretically a Sydney resident can sell a typical house worth perhaps $US800,000 and buy a retirement place down the coast for half that.
Mortgage debt is a financial obligation, it brings the net financial asset base down.
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