Congratulations! We’re trillionaires

Figures from the Reserve Bank show the net household wealth of all New Zealanders is $1,019,146,000,000.

The net wealth was up from $913 billion at the end of 2012, a gain of more than $100b in less than two years.

Housing and land values make up more than half of the wealth, at $563b, with net financial wealth of about $455b.

The new set of household balance sheet figures cover a wider range of assets than in the past. They now include currency, the equity in unlisted small- and medium-sized business and some superannuation holdings.

“As a result of these changes, we now estimate the value of household wealth, including housing and land, to have been more than $1 trillion at the end of the September 2014 quarter,” said Rochelle Barrow, manager of the bank’s Statistics Unit.

Including the equity that households own in small- and medium-sized businesses plugged a big gap in the previously published statistics. That includes the equity in things like trusts, sole traders and partnerships.

One of the perverse side-effects of a runaway housing market and low inflation is that we’re all very rich on paper.

Even so. ?Aren’t you feeling better now that you know NZ Inc’s worth?$1,019,146,000,000? ? Perhaps Bill English should borrow some more against that and we should treat ourselves all to a nice overseas holiday.

 

– Stuff

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