Episode Details

With the property markets surging around Australia, people are starting to ask is this more than a just a property boom? Are we about to enter a property bubble?

That's what I'm going to discuss today with property researcher John Lindeman, and we'll explain the difference between a boom in the bubble in what we believe is ahead for a property market so you have more clarity in making investment decisions

But before I have that chat with John, I will explain to you what it takes to be in the top 1% of wealthy Australians. And what it takes to be in the top 1% wealthy people in the world.

And the figures I'm going to share with you may surprise you, in fact, if you're listening to this, you're likely to be amongst the top 1% of wealthy people in the world.

But I'm then going to share with you what you can do to work your way up the ranks. And I will also have my regular mindset message for you at the end of the show.

Who is in the Top 1%?

Today, I'd like to have a bit of a chat about what it takes to be in the top 1% of wealthy people. We know that true wealth is more than how much money you have or how many properties you own. But you don't have to look far to see the references to the top 1% of money earners and how disproportionate the distribution is in Australia and around the world.

The coronavirus also helped expose the deep divide between the rich and the poor.

But you may be surprised to find that the 1% doesn't just include the superrich. It may include you or someone you know. How rich do you think you need to be to make it into the 1% club?

It's very likely if you're listening to this podcast you're already in the one percent. According to last year's Global Wealth Report, an individual net worth of Australian one million two hundred ninety-five thousand dollars, a combined income of investments and personal assets, will make you amongst the world's richest people. In other words, you need about 1.3 million to be in the world's 1%.

As it turns out, there are discrepancies even among the 1%.

But when you look at the Bureau of Statistics, the average Australian has a net worth of just over a million dollars, and the Australian top 20% have a net worth of 3.2 million dollars.

So, a net worth of just 147,000 Australian dollars puts you in the top 10%. To be in the top 1%, you only need 1.3 million And Australian wealth is heavily skewed to property ownership. Just owning their own home can make many Australians more money than their day-to-day work.

That's why I discuss how to become successful in property. I want you to be in that 1%.

But what's the solution to wealth inequality? Focus less on taking action that could inhibit the top earners and more on what's stopping others from being successful and what's holding back the bottom 50%.

If we're in a property boom, when will the bubble burst?

We are in a new property cycle, but rather than starting off slowly as they have in previous cycles, almost every property market around Australia is exhibiting strong capital growth.

This time around is very different from other cycles I've experienced where capital growth starts slowly and different segments of the market in different states behave differently.

Currently almost every market, in capital cities and regional Australia at the high-end price segments of the market and it's the first homeowner level are moving upwards in price.

The one segment which is languishing is the CBD high-rise apartment.

Some commentators are claiming that our property markets are heading for a boom – I'd say they're a bit late to call you at that – we are in boom conditions.

But others are warning that we could soon be in a price bubble that is about to bust.

So, what's the difference between property booms and price bubbles, which are we in, and what's ahead.

That's the question I