Billions in property wealth set to transfer in low to middle-income suburbs

An unprecedented transfer of wealth estimated at $3.5 trillion is expected to occur in Australia over the next two decades, with significant implications for low to middle-income suburbs, according to a new report.

The analysis by Inspire Realty identifies the top 20 suburbs per state based on Socio-Economic Indexes for Areas (SEIFA) scores of 5 or below, focusing on areas that may lack financial experience.

Colin Lee, Founder and CEO of Inspire Realty, said property investment offers a stable option for inheritance recipients.

“With the greatest wealth transfer in Australian history underway, it’s crucial for beneficiaries to consider property as a sound investment,” Mr Lee said.

The report reveals substantial unencumbered property wealth across low to middle-income suburbs, often exceeding $1 billion per suburb.

In New South Wales, Port Macquarie leads with property wealth of approximately $5.84 billion, derived from 5,844 houses and 700 units owned outright.

Victoria’s top suburb, Mill Park, holds property wealth of an estimated $2.99 billion from 3,594 houses and 20 units owned outright.

In Queensland, Southport stands out with property wealth of $2.31 billion, featuring 1,100 houses and 1,377 units owned outright.

Western Australia’s top suburb, Morley, features property wealth of approximately $1.98 billion with 2,669 houses and 7 units owned outright.

In South Australia, Morphett Vale leads with $1.62 billion from 2,486 houses and 3 units owned outright.

Tasmania’s top suburb, Devonport, holds property wealth of $913 million with 1,855 houses and 3 units owned outright.

Mr Lee warned of increasing scams targeting new beneficiaries.

“Scammers are becoming more sophisticated and are particularly targeting those who come into sudden wealth,” he said.

The report advocates for increased financial literacy and professional advice to help beneficiaries navigate their newfound wealth safely.