According to CFS research, one in five Australians say that if they could invest, they would choose property, with many still expecting returns of 9 per cent a year. This is despite Australian Bureau of Statistics showing national house prices rose just 3.5 per cent in the year to 30 June 2025 and rental yields sitting at roughly 3 per cent.
However, the same CFS data highlights that attitudes toward property investment is shifting among younger Australians. The research reveals only 11 per cent of Australians under 50 expect property to be their largest investment in retirement and half the level of those aged 50–64 (21 per cent). This shift comes even as many continue to overestimate long-term property returns.
“Property confidence is understandable, but concentration risk, like having all your wealth tied up in one asset like a house, can limit flexibility,” said head of technical services at CFS Craig Day.
“That can have a huge impact, particularly for older Australians if life takes an unexpected turn. By diversifying across asset classes whether through equities, fixed income or cash, either directly or through managed investments, you spread your risk, which can lead to more stable returns over time.”
However, according to Patrick Casey, financial planner and director of Rethink Wealth, property can still remain a valuable project for older millennial and Gen x investors who are asset rich but strategy poor (often called HENRY’s).
“It means high earners, not rich yet,” Casey explained to ifa.
“Property investment makes sense for high-income earners in their asset-building years because they can use their strong cash flow and equity to leverage into an asset class that’s relatively stable and has long-term growth potential,” he added.
“Property has lower volatility than shares and allows for leverage, which is why it suits clients who are still in their wealth-building years and want to grow their asset base efficiently.”
However, at the time Casey acknowledged property is not a regulated market, making it at times a difficult space to give advice in.
“Because property is not a regulated financial product. I cannot advise a client to invest in a specific property,” he stated.
“However, we can develop a financial plan, cash flow projections, financial forecasts, and show them as an asset class, how property may be able to fit into their scenarios.”
For Day however, super remains one of the best investments for aspirational investors, but it requires attention.
“Super works best when people actively engage with it. Checking how it’s invested in and making sure that choice is appropriate for your life stage and time horizon, is essential to maximising your financial position at retirement.”
“Professional advice can further strengthen your strategy and ensure it stays on course.”
