For generations, property has been Australia's most popular sport. Backyard barbecues turn into auctions, friends compare renovations, and headlines obsess over house prices.
However, for a growing number of Australians — particularly those in their 30s — the property ladder feels more like a cliff. The true cost of entry keeps climbing, and the dream of financial freedom feels further away than ever.
The good news?
There's another game in town. And this one doesn't require six-figure deposits, 30-year loans, or fixing toilets.
The case for investing, not indebtedness
Australian investors have long equated wealth with real estate. Yet, the data tells a different story.
Over the past three decades, the Australian share market has returned around 9% to 10% per year, including dividends. The US S&P 500 Index (SP: .INX) has done even better, averaging close to 10% to 12% annually.
That means $10,000 invested in ASX shares 30 years ago could now be worth more than $130,000, thanks to the power of compounding. No debt. No tenants. No maintenance bills.
By comparison, property returns can often look impressive because of leverage — borrowed money amplifying gains (and losses). After factoring in interest, stamp duty, insurance, maintenance, and potential vacancy periods, the true net return of an investment property often lags behind a well-managed share portfolio.
Start small, stay consistent
One of the biggest advantages of investing in shares is accessibility. You can start with as little as $100 in a single ASX-listed company or ETF, such as the Vanguard Australian Shares Index ETF (ASX: VAS).
Unlike property, where most of your capital is tied up in one asset, investing across the stock market allows instant diversification, spreading risk across dozens or even hundreds of businesses.
You can add small amounts regularly, reinvest dividends automatically, and sell part or all of your investment whenever you need. This liquidity means your money stays working for you and not locked away behind a bank loan.
While markets rise and fall, time and patience are on your side. As Warren Buffett says, "The stock market is a device for transferring money from the impatient to the patient."
Freedom without the fixtures
For many in their mid-30s, the ultimate goal isn't just wealth — it's freedom. The ability to spend time with family, travel, or work on projects you enjoy, without relying solely on a paycheck.
Investing in businesses — rather than bricks and mortar — can help achieve that goal sooner.
Share ownership doesn't require chasing tenants, negotiating interest rates, or fixing leaking taps. Your capital works quietly in the background as companies grow, pay dividends, and compound returns.
Foolish Takeaway
Property will always have its place. Yet, it's not the only path to financial independence, nor is it necessarily the best one.
For Australians seeking financial freedom, investing in shares and ETFs provides an accessible and lower-stress alternative that can compound over decades without the need for leverage.
Start small. Add consistently. Reinvest dividends. Let time do the heavy lifting.
You don't need to buy a house to own assets that build wealth. You just need to start investing and buy your freedom, one share at a time.
