The Credit Suisse Global Wealth Databook 2013 contains some interesting reading about the wealth of Australia and Australian households.

Of all countries detailed in the report, Australia’s households have the highest median wealth of all countries; have the second highest average level of wealth of all countries, and enjoy the second least unequal distribution of wealth (wealth being a combination of asset values and income).

The composition of wealth in Australia has a particularly strong focus on real estate. It represents 59 per cent of all household asset value – the second highest in the world. The author credits property as being the great wealth equaliser in Australia.

Given the relatively high percentage of retirees in Australia who own their own homes, the most important sources of wealth inequality in Australia are employment levels and wage rates.

Clearly, past and present governments have done a good job in balancing their efforts to maximise employment and to encourage higher wages. Australia has the highest minimum wage in the world, and is ranked fourth highest using OECD purchasing power parity average wage statistics.

Young employed persons in Australia are in an enviable position.

They work in a country where the medium- to long-term growth in property values are indisputably consistent over the past 100 years. They enjoy some of the best wage and employment conditions in the world.

Because property is the asset in which the majority of Australia’s household wealth is created, encouraging a movement towards property ownership when people are younger and earning more (and thus property is the most affordable) would give Australians greater wealth in their later years.

Federal and state governments clearly encourage property ownership already through various programs, including the National Rental Affordability Scheme, first home owner grants, favourable tax policies and first home saver accounts.

The variables of supply and demand drive the market in all commodities, and property is no different. One thing that most people, including housing price forecasters, fail to understand is that the reason that prices remain so stable is because federal and state governments, both directly and indirectly, hold a controlling influence of both the supply and demand variables. That’s because our government system is designed in such a way that underpins this stability.

The first supply factor is labour and materials costs, which are set by the market. The second is access to finance for developers, builders and buyers. By far the biggest supply constraints are physical barriers (such as water, cliffs, freeways and so on). The adage ‘they are not making any more land’ is now irrelevant. Development guidelines enable the creation of more lots (albeit smaller), and higher densities create more living accommodation (albeit airspace). These planning restrictions are set and controlled through the local councils (through zoning ordinances), and state and federal governments.

Governments are the largest holder of residential land in Australia. In Victoria, Places Victoria (formerly VicUrban), has a 12 per cent market share in land sales. The second biggest landowner in Victoria is VicTrack – another Victorian state government enterprise. Other states are similar. The ACT and Northern Territory are virtually all government-owned.

So ‘government’ is the largest single entity that has the capacity to influence the supply of either land or building space, and by extension is the largest single entity that influences property pricing.

Demand on the other hand is driven by buyer numbers. Aside from Australia’s natural growth rate, state and federal governments further influence buyer numbers through their migration policies, foreign investment rulings, tax rulings, and superannuation borrowing rules.

Underpinned by a government structure that is invested in its success, the argument to encourage investment into property is a solid one. A greater level of wealth for households is not only good for the Australia, but good for Australians. Wealth created through self-responsibility by the individual is far more empowering than adopting an attitude of entitlement that seems to be creeping into our modern society, and one that is imposing an increasing burden on taxpayers and governments alike. A decreased need for a government to spend on support programs, and more spending on quality of life services means a better quality of life and more household wealth. Who doesn’t want that?

Every person seeking a home loan has to undergo a number of steps from start to settlement. Understanding what happens in each step can help you prepare for the process. Of course we will be there to guide you and make the whole experience as smooth as possible.

Step 1: Assessment

During the assessment process your Go Mortgage Broker will discuss and help you select the most appropriate features and home loan rate that best suits your finance needs. To enable this process to take place you will need to complete a Fact Finder Questionnaire for your broker.

Once the right loan is selected, the loan application process begins.

Step 2: Loan Application Process

To help make the home loan application as quick and simple as possible, review the checklist below to find out what documents you may need to have ready to apply for your loan:

§ Passport/Visa/Citizenship Certificate

§ Drivers Licence

§ Marriage Certificate

§ Medicare Card

§ Two most recent payslips

§ Most recent PAYG Summary (Group Certificate)

§ If self-employed, the last two year’s full tax returns (Both personal & Business)

§ Proof of existing rental income

§ Proof of proposed rental income

§ Proof of funds to complete – Cash, Redraw, etc

§ Copy of superannuation statements, share certificates etc.

§ Most recent statement for all credit cards, personal loans, leases etc

§ Copy of contract of sale for property being purchased

Your Go mortgage broker will assist you getting all the necessary documentation for your home loan application, and will lodge the loan application with the selected lender.

Step 3: Loan Assessment

The lender will assess your application to determine whether you meet their credit requirements. This process includes confirmation of your income and employment and a credit reference check. Your supporting documents are also verified at this time.

Step 4: Unconditional (Full) Approval

Once the lender is satisfied he will issue unconditional home loan approval and a formal letter of offer will be issued to your broker. The final loan documentation is then issued for your signing and to be returned to the lender/your broker once completed.

Step 5: Insurance

Home and contents insurance provides cover for a range of events such as theft, storm damage, fire and more. This protects both yourself and the lender against a potentially financially devastating event. Most lender require you to obtain insurance on your property and note their interest in the policy; then they request you prove this has been done with a copy of your ‘Certificate of currency’ from the insurance company

We have a range of offers to help cover your property and your home loan. You may need to start your home loan insurance cover prior to settlement.

Step 6: Loan Settlement

Your solicitor/conveyancer will liaise with the lender to schedule a settlement date if you are purchasing a property.

If you are refinancing at this stage we need to organise a discharge form to be sent to your current lender so they can get all the settlement paperwork ready for the new lender to take over. The new lender will then get in touch with the current lender and they will organise a settlement date.

The first repayment on your loan will usually be required one month after the settlement date.

Step 7: Congratulations, welcome to your new Home Loan.

The housing market is absorbing new supply as fast as it is being added, according to research analysis firm RP Data.

The number of unique residential properties advertised for sale across the country in March was recorded at 243,941.

This figure consists of 47,805 newly listed properties over the four weeks and 196,136 re-listed properties.

RP Data said there has been a surge in the number of new properties listed for sale – 18.9% higher than at the same time a year ago.

“To put it simply, properties are being absorbed by the market faster than they are being listed for sale.”

RP Data thinks it is “encouraging” to see a greater number of new residential properties coming to the market than at the same time last year.

“Clearly buyer demand has escalated and quality properties are not staying on the market for a long period of time which is highlighted by the fact that total listings both at a national and capital city level are lower than they were a year ago.”