Housing inheritance to reach $400 billion in 15 years
More than $400 billion worth of property assets are likely to change hands over the next 15 years as part of an unprecedented "baton change" of wealth between generations, a new study has found.
The Bankwest Inherited Housing Report 2010 revealed that a combination of rising property prices, an ageing population and high home ownership rates will combine to produce a "perfect storm" of record inheritance.
It noted that over the next 15 years, an increasing number of "veterans" (aged 70 plus) will succumb to old age and pass on a vast pool of property assets to their adult children.
The report findings may encourage Aussies who choose to compare term deposits in search of the best returns for their financial assets.
"This enormous bounty of wealth will be greatly expanded as older ‘Baby Boomers’ also start to pass away over the coming years and leave behind billions of dollars worth of property", added Bankwest.
According to Reserve Bank assistant governor of financial markets Guy Debelle, the recent global financial crisis did not hinder the flow of housing finance to customers.
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