Household debt...and assets

Craig James

One important point to remember with debt. As long as the debt taken on is to purchase an asset which is appreciating at a faster rate, and serviceability is not a concern, then the situation is sustainable. Understandably higher debts run higher risks if asset prices start falling and/or interest rates rise markedly. The chart shows household assets and debt to income on the same chart for proper comparison.


Craig James

I am married with three children (all in their 20s) and currently live in Huntleys Cove in the inner west of Sydney. Chief interest is athletics and trying to keeping up with the children.My current role is Chief Economist, Commonwealth...

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household balance sheet

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Sathyan Nair

I view debt as a progressive attribute, whether in finance or relationships, provided the reason for indebtedness builds association and collaboration of labour and cognition.

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Henry Kaye

This chart is a crime against finance. That ratio to assets would look even 'better' if disposable income halved! How relevant is the value of Grandma's house in Mossman to the kids with an $800,000 mortgage in Blacktown? Google "negative equity"

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