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.
RELATED ARTICLES
About the author
About the author
Property
ANZ’s mortgage growth, profit slump: why volume without margin won’t pay the dividends
ANZ lifted home-lending volumes, yet profits fell under the weight of regulatory and restructuring costs—an object lesson in the futility of growth that doesn’t convert to margin and productivityRead more
Property
Rate pause, busy summer: where smart capital wins in Australia’s property market
With the Reserve Bank holding rates steady, the summer selling season arrives with rare predictability. Liquidity will lift, serviceability stops getting worse, and sentiment stabilises. The ...Read more
Property
The 2026 Suburb Thesis: A case study in turning trend lists into investable strategy
A new crop of ‘suburbs to watch’ is hitting headlines, but translating shortlist hype into bottom-line results requires more than a map and a mood. This case study shows how a disciplined, data-led ...Read more
Property
From signals to settlements: A case study in turning property insight into investable action
Investor confidence is rebuilding, first-home buyers are edging back, and governments are pushing supply — yet most property players still struggle to convert signals into decisive movesRead more
Property
Australia’s rental choke point: why record-low vacancies are now a boardroom issue
A tightening rental market is no longer just a housing story—it’s a macro risk, a labour challenge and a strategic opening for capital. With vacancies near historic lows and rents still rising, ...Read more
Property
Rents are rewriting the inflation playbook: what record‑low vacancies mean for Australian business
Australia’s rental market is so tight that housing costs are now a primary transmission channel for inflation and interest rates. This isn’t just a property story; it’s a business risk story—affecting ...Read more
Property
Off-market real estate is going mainstream — and changing the rules of dealmaking
With public listings tight and sales still climbing, Australia’s investors are shifting to off-market channels that reward speed, networks and data advantage. The playbook is closer to private equity ...Read more
Property
Australia’s rental squeeze is now a business problem: inflation, capacity and the new growth calculus
Record-low rental vacancies are no longer just a social headline – they’re reshaping cost structures, wage dynamics and capital allocation across corporate Australia. With economists warning of a ...Read more
Property
ANZ’s mortgage growth, profit slump: why volume without margin won’t pay the dividends
ANZ lifted home-lending volumes, yet profits fell under the weight of regulatory and restructuring costs—an object lesson in the futility of growth that doesn’t convert to margin and productivityRead more
Property
Rate pause, busy summer: where smart capital wins in Australia’s property market
With the Reserve Bank holding rates steady, the summer selling season arrives with rare predictability. Liquidity will lift, serviceability stops getting worse, and sentiment stabilises. The ...Read more
Property
The 2026 Suburb Thesis: A case study in turning trend lists into investable strategy
A new crop of ‘suburbs to watch’ is hitting headlines, but translating shortlist hype into bottom-line results requires more than a map and a mood. This case study shows how a disciplined, data-led ...Read more
Property
From signals to settlements: A case study in turning property insight into investable action
Investor confidence is rebuilding, first-home buyers are edging back, and governments are pushing supply — yet most property players still struggle to convert signals into decisive movesRead more
Property
Australia’s rental choke point: why record-low vacancies are now a boardroom issue
A tightening rental market is no longer just a housing story—it’s a macro risk, a labour challenge and a strategic opening for capital. With vacancies near historic lows and rents still rising, ...Read more
Property
Rents are rewriting the inflation playbook: what record‑low vacancies mean for Australian business
Australia’s rental market is so tight that housing costs are now a primary transmission channel for inflation and interest rates. This isn’t just a property story; it’s a business risk story—affecting ...Read more
Property
Off-market real estate is going mainstream — and changing the rules of dealmaking
With public listings tight and sales still climbing, Australia’s investors are shifting to off-market channels that reward speed, networks and data advantage. The playbook is closer to private equity ...Read more
Property
Australia’s rental squeeze is now a business problem: inflation, capacity and the new growth calculus
Record-low rental vacancies are no longer just a social headline – they’re reshaping cost structures, wage dynamics and capital allocation across corporate Australia. With economists warning of a ...Read more
