New report finds Australian homes are equity rich

equity rich

Find out which council regions have the most equity

With all the sensationalised speak in the market and media about property bubbles and Aussies being burdened by massive mortgages, you’d be forgiven for thinking that it’s all doom and gloom.

To gain some insight, we partnered with property data experts CoreLogic RP Data to delve into what’s really happening – and it turns out that Australian homes are actually a major wealth generator.

We have helped hundreds of thousands of customers to get a home loan, so we know the size of home loan debt for various properties around the country. Using CoreLogic’s automated valuation process to get current property valuation estimates, we were able to work out actual equity levels for homes around the country, and guess what?

We found that in Australia, the average property is now worth almost double the amount of debt against it. That means Aussie property owners with a mortgage have an average of 48.4% equity in their home, or $242,642. Not bad for a country of mortgagees burdened by debt!

Unsurprisingly, NSW tops the country with the average property owner now holding more equity in their property than debt, or 56.6% equity worth $358,763. Tassie home owners have the lowest equity in their homes, but at a still healthy 32.7 per cent worth $95,427.

Average level of home equity – state by state in percentage and dollar values

Average level of home equity – state by state in percentage and dollar values

Looking at the capital cities, Sydney and Melbourne’s recent capital growth spurts have seen these cities top the equity leaderboard, with the ACT taking third position with Brisbane hot on its heels.

Average level of home equity – city by city in percentage and dollar values

Average level of home equity – city by city in percentage and dollar values

Sydney’s Hunters Hill took top spot in percentage equity at 72.3% worth $878,481, while Ku-ring-gai council topped it in equity value with close to $1 million in equity.

Top 20 and Bottom 20 council regions – nationally in percentage and dollar values

Top 20 and Bottom 20 council regions - nationally in percentage and dollar values

But what does this all mean? Well, it means that the situation isn’t quite as dire as some ‘experts’ would like us all to believe.

It also means that many Aussies have a large amount of equity that could you help achieve other goals, like property investment, sending your children to private school, renovating your property into the home of your dreams or travelling the world.

If you are thinking about accessing and using your property’s equity, your local expert Aussie Mortgage Broker can help you work out how much equity you have, how much you can comfortably afford to access, and how to structure it within your home loan.

Download the complete, free Aussie/CoreLogic Housing Equity Report or visit aussie.com.au.

Have you used home equity to achieve other dreams? Tell us your experience in the comments below.

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