What I describe as phantom wealth is a term I have heard thrown around, this is especially true with Baby Boomers who own older houses in expensive areas that have greatly appreciated in value. Whilst they may be relatively cash poor, they own substantial properties in very good suburbs, they have the advantage of living in these desired suburbs for much of their adult life.

Phantom wealth is holding assets worth a specific value where the gains are unrealised. This could be doing something as simple as holding undeveloped land holdings. This typically costs the landholder money to hold. This could be in the form of local rates [still a tax], insurance, and accountancy fees.

This is typically wealth that is difficult to liquidate, this is undeveloped property that does not generate an income so actually becomes a cost to the owner. However, this underdeveloped land could be used as collateral for other purchases such as property or shares. A loan may be raised against this property to purchase further landholdings or an income producing asset. It depends on the age of the wealth holder, I would suggest these tend to be older people who have had the advantage of inheritances in the past and just sit on these inheritances.