Skip to main content
Article thumbnail
Location of Repository

Channels from Housing Wealth to Consumption

By Rachel Ong, Sharon Parkinson, Beverley A. Searle, Susan J. Smith and Gavin A. Wood

Abstract

This paper uses micro-data from two national panel surveys to analyze the flow of wealth from residential property onto households' balance sheets, where it is available for discretionary spending. The examples are Australia and the UK, two of the world's most entrenched nations of owner occupation, both with relatively complete mortgage markets. We focus on the early 2000s, which set the scene for an unprecedented wave of housing equity withdrawal. We consider equity released through sales and through additional borrowing. The findings show that equity extraction overall is not only (or even) a function of higher incomes, greater wealth, and older age; rather it occurs across the life course and is linked to pressing spending needs. We draw attention in particular to the growing social and economic significance of in situ equity borrowing?a practice whose financial buffering effects may form a short-lived prelude, rather than a sustainable alternative, to trading on or selling up

Topics: Housing equity withdrawal, Equity borrowing, Panel survey data
Publisher: Routledge
Year: 2013
DOI identifier: 10.1080/02673037.2013.783202
OAI identifier: oai:vtl.cc.swin.edu.au:swin:49801
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://dx.doi.org/10.1080/0267... (external link)
  • http://hdl.handle.net/1959.3/4... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.