Why real estate is not the only path to financial security

As skyrocketing property prices push homeownership further out of reach for many, savvy investors are finding new ways to grow their wealth. Exchange-traded funds are becoming a popular choice.

The latest figures from the ABS indicate the median house price in Australia is now just shy of the $1m mark. While this trend didn’t develop overnight, these eye-watering prices have made it increasingly difficult for those trying to get a foothold on the property ladder to build wealth through real estate.

“We all know property is very expensive, especially for younger generations,” Webull Australia CEO Rob Talevski says. “With the cost-of-living significantly high, and many people living paycheck-to-paycheck, growing your wealth requires more than just saving up your dollars in a bank account. “Younger generations are realising the key to accessing property means they have to grow their wealth some other way to even get their foot in the door.”

Can ETFs fund your property dream?

Talevski says stock market investing, especially through (ETFs), is gaining popularity as an alternative to developing financial security – particularly among younger and newer investors. He explains an ETF is like a basket of different investments, such as stocks or bonds, allowing you to invest in many companies at once while spreading out your risk.

“We’ve seen a lot of younger investors start utilising ETFs as an investment strategy to grow their wealth,” he says. Talevski says ETFs are appealing as they represent a traditional wealth-building strategy and they’re easy to access. “An ETF is a tangible asset – you’re going to get a shareholder’s statement, you know what securities make up the fund, they’re easier to value,” he says.

For those willing to play the long game, Talevski says ETFs can potentially build enough of a nest egg to finance a property purchase if that’s your goal. “You’ve got to be realistic – it’s not going to happen in one year,” he says. “But if you start saving dollars early and put it in an ETF, the returns you’ll get, compared to putting it into a regular interest-earning account, would be generally far greater over a five-year period.”

How $0 brokerage on ETFs helps Aussie investors build wealth

To help make the wealth building journey even easier for investors, Webull Australia offers $0 brokerage on over 300 Australian and 3000 US ETFs. “For those trying to save up for a home, we understand the importance ETFs can play in helping people grow their wealth,” Talevski says. “Providing zero brokerage fees on ETFs, enables investor to preserve more of their capital without losing it on commissions.”

In addition to a low cost of entry to ETF markets, Talevski says Webull’s comprehensive technology and educational resources on their platform empowers investors to make informed decisions about their funds. “This can boost investor confidence where they might look into spreading out how they invest, which can further grow their financial status and then enable them to make that property purchase,” Talevski says.

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This article was developed in collaboration with Webull, an advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.