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
2 min
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.
BNW Developments has established a Sydney presence, joining Arada and Sobha Realty among the growing number of UAE developers pursuing Australian buyers and development opportunities.
Australian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market. The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index. …
Continue reading “ASX falls 0.7 per cent as miners and property stocks retreat”
2 minAustralian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market.
The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index.
Energy was the notable exception, gaining more than one per cent as Brent crude traded above US$103 a barrel. Oil had moved higher amid uncertainty surrounding potential US diesel-export restrictions and broader geopolitical supply risks. The move supported energy producers but renewed concern about inflation inputs across transport and the wider economy.
Gold shares were weak even as spot bullion remained historically elevated. The All Ordinaries Gold index fell about 2.25 per cent, showing that equity performance can diverge from the commodity because of valuation, currency, operating and company-specific factors.
Zip was a prominent loser, falling 11.38 per cent after the company reported short sales after the previous close. Nine Entertainment also weakened after UBS analysts warned of near-term revenue challenges associated with its advertising-supported subscription tier.
Premier Investments led larger winners despite caution about the retail environment. Breville, in which Premier owns a significant stake, also appeared among leading movers. In the broader ASX 300 screen, Myer gained 11.43 per cent and MAAS Group rose 7.93 per cent, while Lotus Resources fell 10.53 per cent. These percentage moves should be checked against company announcements and trading liquidity before attributing causes.
The Australian dollar was broadly flat at US70.38 cents. Spot gold was around US$4,280 an ounce, Brent crude approximately US$103.08 a barrel and iron ore near US$96.90 a tonne late in the session.
The rate outlook remains the central domestic catalyst. Labour-market weakness has not eliminated the possibility of an RBA increase next week, leaving banks, listed property and other rate-sensitive sectors exposed to changing expectations.
Market dashboard
S&P/ASX 200: 8,702, down 0.72 per cent.
All Ordinaries: 8,897, down 0.66 per cent.
Best sector: Energy, up more than one per cent.
Weakest areas: Real estate and materials were the major drags; confirm final sector percentages before publication.
Material winner: Premier Investments led the large-company gainers. Confirm its final closing move from the ASX before publication.
Material loser: Zip, down 11.38 per cent.
ASX 300 percentage leader: Myer, up 11.43 per cent.
ASX 300 percentage laggard: Zip, down 11.38 per cent.
AUD/USD: Approximately US$0.7038, broadly flat.
From the Caribbean to Australia’s east coast, Oyster’s latest world rally promises a bluewater voyage designed for owners seeking ultimate sailing experiences.
New research suggests that bonuses make employees feel more like a mere cog in a wheel.
