How young people can become as rich as their parents – and they don’t even have to get on to the property ladder
PHOTO: Afterpay shares in one year have surged from just $8.80 to $108 after peaking at $154. Pictured is billionaire Afterpay founder Nick Molar with his wife Gabrielle
Young Australians can become richer than baby boomers simply by choosing shares over property.
Homes with a backyard are beyond the reach of an average-income earners with Sydney’s median house price last month surging to $1.061million, making older Australians even richer.
Monthly mortgage repayments of $4,500 would be impossible for a single person on an average, full-time salary of $89,000.
People under 40 would also be unlikely to make big, short-term gains on a cramped, one-bedroom Sydney apartment, selling for $500,000, with oversupply issues keeping a lid unit values, even as house price records are set across most of Australia.
Shares can instead be a better investment, with the likes of Afterpay and CSL delivering handsome rewards to investors willing to take a risk.
CMC Markets chief market strategist Michael McCarthy said that since 1955, shares had delivered average annual returns of 7 per cent, compared with 4 per cent for property, when the compounding effect of returns was factored in.
‘Share markets outperformed property as a whole, it’s not just those top performers like CSL and Afterpay,’ he told Daily Mail Australia.