Asset rich, cash poor
Eight out of 10 over-60s in Australia are homeowners. That’s great for their wealth. The problem arises when the family home is the only asset – no super, no investments, just the age pension to get by on.
For younger generations struggling to break into the property market, the idea of being asset rich, cash poor can seem like a privilege rather than a problem. For retirees, however, it presents real challenges.
Many seniors purchased their home decades ago when property prices were vastly more affordable than today. Over time, those properties have skyrocketed in value.
A report by Aussie Home Loans found that in the 30 years from 1991 to the end of 2021, home values nationally rose by around 6% annually. As a result, a modest home in the NSW Central Coast suburb of Gwandalan, which cost $81,710 in the 1990s, could now be worth in excess of $775,000.
Melbourne’s Oak Park, where homes now sell for $825,000, had a median value of $113,400 in the early 90s. In the
