2024 has arrived and with it our list of good intentions and New Year’s resolutions. 

Talking with family and friends over the summer holidays, getting ahead financially is often top of the list, but if you're under 35, you might have noticed that how we build wealth in Australia is changing.

Home ownership as a first investment is no longer a reality for many

A decade or two ago, the answer to getting ahead financially in your 20’s and 30’s was fairly simple. 

Save for a deposit and get into the property market, invest your super wisely in shares, work hard and watch your money grow. As the below chart starkly shows, this plan for building wealth is pretty much in the dust. 

Home ownership in Australia continues to fall off a cliff and is now at it’s lowest level since the ABS started recording this data in 1994.  

If property ownership is out of reach, it’s crucial to invest elsewhere

Among 25-34 year old’s, almost 60% now rent compared with just 40% being home owners. And the trend is unlikely to change in the coming years. 

A lack of affordable housing, strong investor demand and higher interest rates, all make it harder for younger professionals - even those earning great salaries - to own a home or invest in property.  

In the 80s and 90s, the average price of a standard home in a capital city was approximately $72,872 – around 3.5 times higher than the average annual wage at the time. In 2023, it was $536,377- or 6 times the higher than the average income. 

So, while your parents used their salary and savings to invest in property, the reality is that most millennials will need to build wealth faster while renting, to be able to get a foot onto the property ladder at all.  

One of the golden rules of building wealth is starting early enough to see your returns compound (where your returns are reinvested for even greater returns over time). 

So, if you’re not investing in property at a young age, it’s crucial to be investing in something else, to allow the magic of compounding to work the hardest for you. Otherwise, you’re just paddling hard and going backwards. And nobody likes that.

Why now is a great time to invest in shares

That’s where share markets and easy, reputable online investment platforms like Rev Invest come in. 

Share markets have had a strong start to the year, following plenty of volatility in 2023, in the face of persistent global inflation and geo-political conflict and uncertainty. 

It makes sense that the recent volatility in share prices can make new investors uncertain, especially if you’ve never experienced market volatility before. 

But here’s the thing: Historically, markets recover after falls and go on rise to new highs, as the chart below shows. So, whether markets are up or down when you start investing, over time you will build wealth. 

And with a rate of return typically higher than term deposits accounts, you're likely to build wealth faster than putting your money in the bank.

So, if you want to achieve that home ownership goal faster, investing in shares is one of the best choices you can make.

Invest regularly and watch returns build over time

Of course consistency is important too.  

The best way to maximise returns is to invest a consistent amount regularly.  Try setting up a direct debit from your salary to benefit from dollar cost averaging - where you buy shares at regular intervals to help grow your money over time.  

It’s also important to have the right portfolio for your risk tolerance – the amount of money your prepared to risk to get a return and your time horizon – how soon you need access to the money you’ve invested

When you’re clear on these, Rev Invest has created portfolios to suit different investors, so you can start investing with confidence and never look back. 

That few hundred dollars you give up every month now or that inheritance lump sum or work pay-out you may have received, can compound and bring you more financial choice and opportunities before you know it. And that’s what we all want, right?

How to get started

Rev Invest is the perfect way to start investing in ETFs, with your choice of in five tailored managed portfolios to help you get ahead faster. 

Set up your account in minutes and start investing with as little as $5000 today! 

About Rev Invest 

Rev Invest is a simple, accessible and affordable direct investment platform, designed to help you kickstart your investment journey and reach your financial goals sooner. It is managed by the Investment Committee at parent company FMD Financial, a privately owned, Australian financial services firm with over $2 Billion fund under advice and two decades experience helping clients build sustainable wealth.