As Australia braces for an unprecedented transfer of wealth estimated at $3.5 trillion over the next 20 years, new analysis by Inspire Realty highlights the critical need for beneficiaries to invest wisely.
This wealth shift is particularly significant for low to middle-income households, who may lack the financial training of their wealthier counterparts.
Colin Lee, Founder and CEO of Inspire Realty, emphasises the importance of property investment as a stable and lower-risk option for those receiving inheritances. “With the greatest wealth transfer in Australian history underway, it’s crucial for beneficiaries to consider property as a sound investment. Property offers stability and potential for growth, unlike high-risk ventures that can lead to significant financial loss,” said Mr Lee.
The report identifies the top 20 suburbs per state based on SEIFA scores of one to five, indicating areas with higher socio-economic disadvantage. These suburbs were selected to focus on households that may not have the financial experience of more affluent areas. The analysis used 2021 Census data to estimate the number of properties owned outright and rolling 12-month median prices to determine unencumbered property wealth.
“The allure of quick gains from high-risk investments can be tempting, but it’s a dangerous path for those who are not financially savvy. Property investment, particularly in familiar suburbs, provides a tangible and secure way to grow and protect wealth,” Mr Lee added.
The findings reveal substantial unencumbered property wealth across low to middle-income suburbs, often exceeding $1 billion per suburb. By investing inherited wealth in housing within these areas, beneficiaries can ensure both stability and potential growth. However, Mr Lee warns of the increasing threat of scams targeting new beneficiaries.
“Scammers are becoming more sophisticated and are particularly targeting those who come into sudden wealth. It’s imperative for beneficiaries to seek professional financial advice and be vigilant against unsolicited offers. Protecting oneself from financial predators is just as important as making wise investment choices,” Mr Lee cautioned.
Inspire Realty advocates for increased financial literacy and access to professional advice to help beneficiaries navigate their newfound wealth safely. By focusing on property investment, beneficiaries can build a secure financial future without falling prey to high-risk schemes and scams.
