Australian Property News

Property dominates Aussie rich list

Posted on Thursday, June 11 2009 at 2:25 AM

Property is Australia's leading wealth creator, with more of the country's richest individuals making their money in property than any other industry, according to a recent list of the 200 richest Australians.

Out of the 200 individuals on BRW's Rich 200 list, 61 made their fortune in property, well ahead of the 23 involved in the resources industry and 19 working in investment.

Three of the top 10 richest Aussies made their fortune in the property industry:

• Frank Lowy, of Westfield Group fame, whose worth is estimated at $4.2 billion;
• Developer Harry Triguboff of Meriton Apartments, worth an estimated $3.7 billion; and
• John Gandel, another shopping centre magnate, whose fortune is tipped at $2.7 billion.

Michael Yardney of Metropole Property Investment Strategists says small investors can learn from the way Australia's wealthiest people have made their money.

"One lesson to take from the millionaires and billionaire who have used property to accumulate their wealth is that most are long-term investors," Yardney says.

"They buy well-located assets and add value, often through development, and use the power of leverage and compounding to grow their asset base. They do not try to trade or speculate their way to wealth."

Mark Armstrong from Property Planning Australia says setting goals is another lesson worth learning from elite property industry figures.

"Each of the property investors in the top 200… have worked for many years to build their wealth. In addition they have each had a focused strategy and worked on achieving their long-term goals," he says.

"Many property investors fail to clarify their goals and enter the market with the misguided belief that all property is good property. Often investors fall into the trap of being 'sold' to."

"Investors can learn that to be a successful property investor you must first review your own financial position, develop a clear strategy that fits your personal and financial position and your risk profile, then implement the strategy by researching the market and making informed decisions."