The top 10 motivators for Australian investors
As wages continue to stagnate, investors are turning to shares in order to fund plans for property, travel and self-funded retirement
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Less work and more play are key themes revealed in new research showcasing the 10 biggest motivations for Australians to invest their hard-earned money in assets such as shares and property.
Online trading platform Stake surveyed more than 2,000 Australian investors and found the biggest motivation to invest was a self-funded retirement in which people could live off their investments. The second biggest motivation was supplementing salaries with investment income, reflecting a separate finding that investors feel slow wage growth is a key barrier to reaching their financial goals.
Cutting back on working hours was another motivator, perhaps reflecting the mindset of 46 percent of respondents who said asset ownership was a more effective means of building wealth than how hard they worked in today’s economy.
“While trends such as ‘quiet quitting’ may have drawn criticism, they could reflect a feeling that work is just not compensating people as they need,” according to the report.
Almost one in five survey respondents expected no pay rise over the next 12 months, reflecting the likelihood that higher-for-longer interest rates will eventually lead to a weaker jobs market. The latest data showed a slight uptick in unemployment to 4.1 percent in June.
Homeownership was another reason prompting Australians to invest spare money in the share market or other asset classes to generate additional income or capital gains. The ‘deposit hurdle’ remains a key challenge for first home buyers, particularly as home values continue to rise at a faster rate than wages. In FY24, the median Australian home price rose by $59,000, according to CoreLogic.
The research also revealed that milestone experiences were prompting some people to invest, with funding a holiday or extended travel one of the most popular motivations. Some investors said they were pursuing other lifestyle goals, such as earning enough investment income to enable them to fully pursue a hobby or passion, renovate or upgrade their homes, or simply buy more things.
Health and family considerations, such as supporting physical and mental health, or starting a family, were also motivating some Australians to invest. This is noteworthy given Australia’s long-term declining birth rate and the impact of the current cost-of-living crisis on household budgets.
KPMG urban economist Terry Rawnsley says: “With the current rise in living expenses applying pressure on household finances, many Australians have decided to delay starting or expanding their families.”
In terms of investment strategies, Morningstar senior investment specialist, Shani Jayamanne, said “an inaccessible property market” was prompting more investors to look to the share market. “The relatively low barriers to entry, and the history of strong market returns over the long term, mean stocks are an attractive option for those working towards a more comfortable future,” she said.
In FY24, share market investments delivered very similar returns to real estate. The ASX 200delivered 12.1 percent total returns, incorporating share price growth and dividend income, while property delivered a median 12.2 percent in capital growth and rent, according to CoreLogic data.
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For self-employed Australians, navigating the mortgage market can be complex—especially when income documentation doesn’t fit the standard mould. In this guide, Stephen Andrianakos, Director of Red Door Financial Group, outlines eight flexible loan structures designed to support business owners, freelancers, and entrepreneurs.
1. Full-Doc Loan
A full-doc loan is the most straightforward and competitive option for self-employed borrowers with up-to-date tax returns and financials. Lenders assess two years of tax returns, assessment notices, and business financials. This type of loan offers high borrowing capacity, access to features like offset accounts and redraw facilities, and fixed and variable rate choices.
2. Low-Doc Loan
Low-doc loans are designed for borrowers who can’t provide the usual financial documentation, such as those in start-up mode or recently expanded businesses. Instead of full tax returns, lenders accept alternatives like profit and loss statements or accountant’s declarations. While rates may be slightly higher, these loans make finance accessible where banks might otherwise decline.
3. Standard Variable Rate Loan
A standard variable loan moves with the market and offers flexibility in repayments, extra contributions, and redraw options. It’s ideal for borrowers who want to manage repayments actively or pay off their loans faster when income permits. With access to over 40 lenders, brokers can help match borrowers with a variable product suited to their financial strategy.
4. Fixed Rate Loan
A fixed-rate loan offers repayment certainty over a set term—typically one to five years. It’s popular with borrowers seeking predictability, especially in volatile rate environments. While fixed loans offer fewer flexible features, their stability can be valuable for budgeting and cash flow planning.
5. Split Loan
A split loan combines fixed and variable portions, giving borrowers the security of a fixed rate on part of the loan and the flexibility of a variable rate on the other. This structure benefits self-employed clients with irregular income, allowing them to lock in part of their repayment while keeping some funds accessible.
6. Construction Loan
Construction loans release funds in stages aligned with the building process, from the initial slab to completion. These loans suit clients building a new home or undertaking major renovations. Most lenders offer interest-only repayments during construction, switching to principal-and-interest after the build. Managing timelines and approvals is key to a smooth experience.
7. Interest-Only Loan
Interest-only loans allow borrowers to pay just the interest portion of the loan for a set period, preserving cash flow. This structure is often used during growth phases in business or for investment purposes. After the interest-only period, the loan typically converts to principal-and-interest repayments.
8. Offset Home Loan
An offset home loan links your savings account to your mortgage, reducing the interest charged on the loan. For self-employed borrowers with fluctuating income, it’s a valuable tool for managing cash flow while still reducing interest and accelerating loan repayment. The funds remain accessible, offering both flexibility and efficiency.
Red Door Financial Group is a Melbourne-based brokerage firm that offers personalised financial solutions for residential, commercial, and business lending.
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