Australia is on the brink of an unprecedented $3.5 trillion wealth transfer over the next two decades, in a shift poised to significantly impact the nation’s low to middle-income suburbs.
According to a report by Inspire Realty, suburbs such as Port Macquarie in NSW and Mill Park in Victoria, where a substantial number of properties are owned outright by older Australians, are expected to see a major transition as these assets change hands.
In NSW, Port Macquarie tops the list, with an estimated $5.84 billion in unencumbered property wealth, followed by Blacktown with $3.31 billion and Orange with $3.07 billion.
Victoria’s Mill Park leads with $2.99 billion, while Queensland’s Southport is noted for its $2.31 billion in property wealth.
In South Australia, Morphett Vale leads with $1.62 billion in property wealth, followed by Mount Gambier with $1.28 billion.
Western Australia’s top suburbs are Morley, with $1.98 billion, and Thornlie, with $1.71 billion.
In Tasmania, Devonport holds $913 million in property wealth, with Glenorchy close behind at $699 million.
Founder and Chief Executive Officer of Inspire Realty, Colin Lee, said it was important for those receiving properties from family members in the future to look at ways to keep the money invested in real estate.
“With the greatest wealth transfer in Australian history underway, it’s crucial for beneficiaries to consider property as a sound investment,” Mr Lee said.
“Property offers stability and potential for growth, unlike high-risk ventures that can lead to significant financial loss.”
The report said that financial literacy and access to professional advice for those inheriting property is going to be critical going forward.
Many people living in lower socioeconomic areas might lack the financial training and experience found in wealthier areas, making residents more susceptible to scams and poor investment decisions.
“Inheriting property in familiar suburbs provides a tangible and secure way to grow and protect wealth,” Mr. Lee said.
“However, scammers are becoming more sophisticated, particularly targeting those who come into sudden wealth.
“Beneficiaries must seek professional financial advice and remain vigilant against unsolicited offers.”
