The Positives and Negatives of Variable Rates in the Australian Economy

Nearly 60% of household wealth in Australia is in the housing asset class. In the US, it's completely reversed. Most household wealth is held in equities like share markets. The tax rules are quite different in Australia. If you pay down your principal place of residence, that's where most people will focus on placing their income. But you can maximize your leverage on your investment properties. So you'll tend to find that mortgage balances in Australia for your principal placeof residence tend to be very low. It's the opposite in the US.