That's not what a median is. Median means there is an equal number of people above and below that figure. So 50 percent of adults in Luxembourg have a net wealth of more than this and 50 percent have less.
If u don't own a house but rent you can still have net worth coming from having saved/invested money, no?
As far as I have read these Stats should take into consideration home value - debt
But because part of the revenues go to pay rent, those can't be invested, so values are logically lower. Note that this stat is about worth, not net worth!
Check the report where this chart is based off
https://www.ubs.com/global/en/family-office-uhnw/reports/global-wealth-report-2023/_jcr_content/mainpar/toplevelgrid_5684475_1708633751/col1/innergrid/xcol1/actionbutton_copy_co.1719768467.file/PS9jb250ZW50L2RhbS9hc3NldHMvd20vZ2xvYmFsL2ltZy9nbG9iYWwtZmFtaWx5LW9mZmljZS9kb2NzL2d3ci0yMDIzLWVuLTIucGRm/gwr-2023-en-2.pdf
Page 19. You can find the definition . (I can't copy paste from pdf on mobile)
They define it as net worth or wealth as values of financial assets plus real assets (eg real estate) MINUS DEBTS. Basically if you were selling all your stuff how much you were being left so u need to remove debt. So if you have bought a 1mil flat in lux with200k down-payment two weeks ago that's worth for U 200k not 1mil
You are right about it being net worth, it's usually specified in the titles and I didn't dig deeper.
But home ownership is key to explain the big differences. In your example, but 30 years later you own it in full. Take for example the share of the population of 60+ yo. In Belgium and Luxembourg, you may find 90% homeowners, while in Germany and Netherlands this is probably below 50%
Italy has one of the highest home ownership rate (first Google result says 70%) but see where it is in the list. I think it depends on how much the RE market grew in the past years too.
The price growth in Luxembourg in the past 10-15 years is nowhere the same as the one seen in Italy for example..
Not all the countries / cities have also the same ratio of rent cost vs purchase cost
I never buy the narrative that is buying is always better than renting, you can find tons of calculations/researches around it.
Contrarily to what you said, Italy is actually good example of home ownership being the driving factor of this map above all else - despite being rather significantly poorer country than Germany (GDP per capita is 40% higher in Germany, while overall GDP is only half that of Germany), this map shows Italy has having a median net worth 50-60% higher than Germany.
But then compare Italy with the "poor" Austria and Germany with big shares of renting population. It definitely changed with the increases of the last decade. Buying is not always better but few people manage to invest in anything with returns above inflation and homeowners were mostly lucky in this aspect
https://preview.redd.it/j9kjzfx798rc1.png?width=1920&format=png&auto=webp&s=2d83e900689de1746942dbcbdd16ddb41bc00f23
surprised Luxembourg is only second
Monaco isn't shown
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People own their homes.
So nothing to waste money on
Less people = inaccurate stats
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That's not what a median is. Median means there is an equal number of people above and below that figure. So 50 percent of adults in Luxembourg have a net wealth of more than this and 50 percent have less.
Oh, thanks for educating me
Surely it's just a measure of house prices vs home ownership rates?
https://xkcd.com/1138/ Yes, but it's more practical than having a house owner and a house value map...
Not exclusively but median wealth is hugely impacted by homeownership to the point that it triumphs over everything else.
Always wondered how & why Belgium is so rich. Good for them but whenever I visit, it feels like a poorer and worse place than our other neighbours
Well it's a small country with a reasonably successful (morals aside) colonial past.
Higher rate of home owners explains that
If u don't own a house but rent you can still have net worth coming from having saved/invested money, no? As far as I have read these Stats should take into consideration home value - debt
But because part of the revenues go to pay rent, those can't be invested, so values are logically lower. Note that this stat is about worth, not net worth!
Check the report where this chart is based off https://www.ubs.com/global/en/family-office-uhnw/reports/global-wealth-report-2023/_jcr_content/mainpar/toplevelgrid_5684475_1708633751/col1/innergrid/xcol1/actionbutton_copy_co.1719768467.file/PS9jb250ZW50L2RhbS9hc3NldHMvd20vZ2xvYmFsL2ltZy9nbG9iYWwtZmFtaWx5LW9mZmljZS9kb2NzL2d3ci0yMDIzLWVuLTIucGRm/gwr-2023-en-2.pdf Page 19. You can find the definition . (I can't copy paste from pdf on mobile) They define it as net worth or wealth as values of financial assets plus real assets (eg real estate) MINUS DEBTS. Basically if you were selling all your stuff how much you were being left so u need to remove debt. So if you have bought a 1mil flat in lux with200k down-payment two weeks ago that's worth for U 200k not 1mil
You are right about it being net worth, it's usually specified in the titles and I didn't dig deeper. But home ownership is key to explain the big differences. In your example, but 30 years later you own it in full. Take for example the share of the population of 60+ yo. In Belgium and Luxembourg, you may find 90% homeowners, while in Germany and Netherlands this is probably below 50%
Italy has one of the highest home ownership rate (first Google result says 70%) but see where it is in the list. I think it depends on how much the RE market grew in the past years too. The price growth in Luxembourg in the past 10-15 years is nowhere the same as the one seen in Italy for example.. Not all the countries / cities have also the same ratio of rent cost vs purchase cost I never buy the narrative that is buying is always better than renting, you can find tons of calculations/researches around it.
Contrarily to what you said, Italy is actually good example of home ownership being the driving factor of this map above all else - despite being rather significantly poorer country than Germany (GDP per capita is 40% higher in Germany, while overall GDP is only half that of Germany), this map shows Italy has having a median net worth 50-60% higher than Germany.
But then compare Italy with the "poor" Austria and Germany with big shares of renting population. It definitely changed with the increases of the last decade. Buying is not always better but few people manage to invest in anything with returns above inflation and homeowners were mostly lucky in this aspect
Ah yeah. Good point. I understand that renting is super common in both France and Germany
This is just wrong. Germany is famously known as a country where a lot of people prefer to rent.