RDP 2006-08: A Survey of Housing Equity Withdrawal and Injection in Australia Appendix C: Defining Equity Withdrawers and Injectors

Carl Schwartz, Tim Hampton, Christine Lewis and David Norman

August 2006

Table C1: Classification of Equity Injectors and Withdrawers
Component Calculation Notes
Change in housing debt Outstanding housing debt at end 2004 minus
Outstanding housing debt at end 2003 		Households with offset accounts separately provided information on offset account balances at end 2003 and end 2004, which were used to obtain net loan balances.
Change in housing equity from transactions Value of properties purchased (including transfer costs) over 2004
minus
Value of properties sold (net of transfer costs)
minus
Value of funds obtained through sale of inherited property 		Households provided information on the value of residential property purchases and sales, including funds flowing from the sale of inherited property, either by the household selling the property directly, or receipt of funds arising from trustee sale. This ensured that equity withdrawals arising from death were captured.
The value of any properties inherited and retained during the year were not counted as an injection, largely because such transfers did not involve spending by the inheriting household. Transfer costs associated with the acquisition were, however, counted as housing spending.
Renovations Amount spent on renovations Attempts were made throughout the survey to ensure that renovation spending captured only alterations of a structural nature in accordance with national accounts definitions; that is, not redecorations and maintenance such as repainting, for example.

Note: Housing equity withdrawal is calculated as change in housing debt, minus change in housing equity from transactions, minus renovations.