Invest
Is home ownership still a good investment?
Australians are waiting longer to buy more expensive property assets that perform relatively poorly compared with other asset classes, new research has found.
Is home ownership still a good investment?
Australians are waiting longer to buy more expensive property assets that perform relatively poorly compared with other asset classes, new research has found.

According to research by investment managers Fidelity International, the average Aussie in 2018 bought their first home at 35, compared to 24 three decades ago.
Anthony Doyle, Fidelity International’s cross-asset specialist, believes younger people might be put off by diminishing returns.
“There are a number of reasons for this trend, including housing affordability, tighter lending standards and changing living preferences amongst younger generations,” Mr Doyle explained.
“However, one consideration that may be influencing the home purchase decision amongst younger Australians may be lower return expectations of first home buyers versus older generations,” Mr Doyle said.

Investors who were born in the ’50s and purchased property at age 30 (1980s) saw the value of the family home grow by 187 per cent.
When repeated for those born in the ’60s, ’70s and ’80s who also bought a home in their 30s, the total returns fell significantly.
“For those born in 1980 that purchased their first home in 2010, the performance of their house has been relatively poor relative to other asset classes, rising by only 9 per cent in real terms over the course of the decade,” Mr Doyle said.
In comparison to other assets over the same time, global equities grew by 145 per cent, Australian equities made 97 per cent more and Australian bonds grew by 63 per cent.
Mr Doyle also highlighted why he does not believe housing prices will continue to grow in the medium term.
“Given the current high level of Australian house prices relative to incomes, without higher wages growth, it is difficult to see the recovery in house prices seen over the last six months of 2019 being sustained over the medium term,” Mr Doyle said.
However, the investor noted that the housing market could see a short-term spike as interest rate cuts and the potential for quantitative easing from the RBA act as a “tailwind for house prices”.
“Given the low absolute level of interest rates, it is unlikely that those purchasing a house today will experience the high house price returns that older generations of Australian home owners have experienced,” Mr Doyle concluded.
About the author

About the author


Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more