We can often get caught up in the expectations of others, what our parents feel is best for us or what society feels is best for us. This can lead us down the path of believing that this is the right thing for our lives without considering the alternatives. An example of this would be owning your own home. Throughout our life, from childhood to retirement, we are held with the expectation that in order to be successful, fulfilled and satisfied, we must own our own home.

Now this isn’t exactly a destructive idea and most people are quite happy to follow along and live quite happy lives. What happens though when this ideal start to grow out of reach for a group of people, when housing prices climb to such heights that our wages simply cannot keep up? We then feel that we have failed in the eyes of society and we are forever reaching for a dream that is almost impossible. You wouldn’t feel too good about yourself but is this really your dream or is it a result of the conditioning you have carried with you from childhood. What about the alternatives that you turned a blind eye to in the pursuit of an asset that has escaped your aspirations?

This article in the Sydney Morning Herald covered the fact that now is the worst time to be an aspiring property owner. It is a struggle to keep up with the average housing price in Australian now over $650,000, our yearly income of $78,832 is now eight times less. Let’s forget about owning our own home for a moment and focus where else you could put your money and come out ahead.

Financial Markets

For the average person, financial markets can seem a little intimidating. You might fear losing your money altogether on some bad investments or don’t see the immediate benefits. It fact, it is easier now more than ever to get involved in the stock market with the entry barriers fast disappearing. You can get started with just a few dollars each month and over time you would have quite an impressive portfolio that can produce consistent returns that can even outstrip gains in the property market.

Marketing place Investing

Peer-to-peer (P2P) lending is fast becoming a simpler and cost-effective way of investing and borrowing money. Lenders can get a greater return on their investments while borrowers are able to secure better rates since the banks are no longer involved.

Start Ups

Far more fulfilling and satisfying than owning your own home, is growing a successful business. You don’t even need to start a business to make a healthy return but instead, you can invest in somebody else’s hard work. Angel investment is when you contribute funds towards an early stage startup in exchange for equity.

Super

Even if you are unsure where to put your money now, there is always one investment that when held over the long term, can generate significant returns. With the power of compound interest, investing in your super early on can have flow on effects that turn into quite impressive numbers, far more significant than potential gains in the property market from your own home.

Rentvesting

While you might be struggling to secure a mortgage on a new home, even in an area you are not particularly fond of, that doesn’t mean property is entirely out of your reach. By renting the place you live, you can live in the location you choose, freeing up capital to investment in property in high growth areas. Rentvesting allows you to make a financial decision for the future while reaping the benefits of renting today.

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