Australia’s wealth is on the rise if the recently released Knight Franks Wealth Report 2024 on Australia’s high-net-worth individuals is anything to go by.
 
So we are clear on definitions, a high-net-worth individual (HNWI) is defined as someone with assets outside the family home of US$1million (A$1.5 million) or more.

At the end of 2023 there are already two million Australians with a net worth of between $1.5 million to $7.7 million. Interestingly, as interest rates have increased, there has been a corresponding increase in the capital values of prime residential markets sought after by the higher net worth individuals (HNWIs). This completely goes against the economic principles of what should occur with property values when interest rates are increased. While interest rate increases are meant to dampen demand, for these types of properties it is not the case. The reason for this is that HNWIs are generally purchasing with cash, not debt, and so are not unduly affected by interest rate increases. 
In the year ahead, Residential property features as a favoured investment class for many HNWIs with Residential and Commercial property high on the acquisition list, with 20% looking to purchase. This demand will further cement in the likelihood that interest rates will remain higher for longer or are they really at where they need to be? 
These are the findings of the recent Knight Franks “The Wealth Report 2024”  https://content.knightfrank.com/resources/knightfrank.com/wealthreport/the-wealth-report-2024.pdf

Welcome Luca Barbagallo to the Future Gen Team 

Luca is a recent graduate of the University of Queensland having completed double degrees in Commerce and Economics. Luca has joined Future Gen as an Administrative Assistant, commencing his career in Financial Planning.
Outside of work, Luca enjoys rock climbing, his second passion of working on his car and skateboarding with his friends.

Please welcome Luca when next you speak.