Over 30,000 full time jobs were created in March 2010 as the economy goes from strength to strength, increasing the demand for workers particularly in sectors linked to the resources boom.

The unemployment rate is holding steady at 5.3%, which is a great achievement given the job security worries that existed 12 months ago.

The strong employment figures are a key factor underpinning the strength of house prices. Mortgage default rates are at less than 0.5%, and with job security and rising property prices comes the confidence to upgrade homes and invest in more property.

“What happens if I lose my job?” is sometimes raised as a concern and a reason not to proceed by prospective first-time property investors. However, the low unemployment rate and the strengthening economy are pointing towards skills shortages in many sectors. Even in the event of an unexpected job loss, therefore, the chances of remaining outside the workforce for any length of time seem remote.

The Australian situation is very different from America. There the unemployment rate is over 10% and property prices have fallen sharply, with one in four homeowners in negative equity, where they owe more than their houses are worth.

How do you feel about employment and property prospects in Australia, versus the USA? Are we not seeing once again the benefit and privilege of living in “The Lucky Country?” If you agree, then how can you turn this good fortune to even further good, so that you can use the buoyant present conditions to build your family assets and wealth for the future?

One obvious answer is to use the strong employment climate and the value of your home in a surging property market to invest in more property. The equity in your home is likely to be rising every month, possibly providing you with the deposit you need for an investment property, without having to save for a cash deposit.

In many ways this equity growth is simply a windfall. Where did it come from? Why are Australian homes worth on average 12% more than at this time last year? What made this possible? Did you have to do anything to earn that additional wealth?

The most important question of all is, “What are you going to do with this equity windfall, and can you put it to better use than it simply lying dormant in your home?”

Every month our new and existing clients are making decisions to use the confidence they feel in the economy and their employment prospects to put their equity gains to work for them, with a view to building a strong asset base enabling choices and options when it comes time to stop work. You can too.

If you would like to learn more and discuss how McCarthy Group can assist you, click here.

The Westbank analysis was based on Australian Bureau of Statistics (ABS) census data on home ownership by gender, age group, statistical division, ABS life expectancy data by state and age and Residex median house prices by statistical division.

Article quoted by Lending Central, 5 April 2010.