Could Where You Live Affect How You Invest?

Which state is home to the biggest risk takers? Where do South Australians get their investment advice from? Are you more likely to invest in tech stocks if you’re from Victoria? We take a look at how the state you call home could influence how and why you invest.

eToro surveyed 1,181 Aussie investors to get an idea on where Aussies are putting their money, where they get their advice, the strategies they’re leveraging, and the change in sentiment around investing, especially amongst young Australians. Here’s what we learned about how investors in different states invest:

Investors in Victoria:

• 35% of Victorians invest in the stock market as a way to earn a bit of extra cash (especially for those who were on JobKeeper or reduced salaries during COVID-19).
• Victorians also are the biggest tech fans, with over 23% opting to invest in Big Tech companies such as Tesla, Amazon, Apple, and Netflix (compared to just 9% of investors in WA and 14% in SA).
• 21% of Victorians invest as a hobby, compared with 15% of New South Welshmen.
• When it comes to getting investment advice and knowing the best time to trade stocks, 22% of Victorians eagerly watch the news, 20% analyse charts and 14% go with their gut feeling.
• Victorians love to be in control, with 36% considering an online share trading account to control their own investments. Only 10% of Victorians put their investments in the hands of brokers.
• Compared to other states, Victorians are keen crypto investors (9%), and 8% are opting for commodities like gold and silver.

Related article: How to invest in Bitcoin in Australia

Investors in New South Wales:

• 44% of investors from NSW decided to change their investment strategies to protect their investments against market volatility, compared to 46% of investors from WA, who instead decided to weather the storm and stick with their pre-COVID strategies.
• 27% of investors from NSW love having access to international markets, compared to 30% of those from SA preferring to just invest in Australian stocks.
• 10% of New South Welshmen prefer to invest in crypto or commodities (13%), compared to 5% of investors from WA.
• 15% of New South Welshmen love the thrill of investing, compared to just 9% of Queenslanders.
• 32% of investors in NSW are investing to purely get ahead of their 9-to-5 jobs, while 20% want to use their investment earnings to buy a house.
• 10% of New South Welshmen are most likely to invest on the back of what they read on social media, while 13% get their advice from YouTube.
• New South Welshmen also are the most clued-up when it comes to understanding how much money investors need to get started on the stock market, with over 53% knowing that it costs less than $1K to get started.

Related article: A Guide To Investing While Young

Investors in South Australia:

• A whopping 68% of South Australians prefer to invest in stocks over a bank, and 18% believe they can make more money than their superannuation fund.
• 21% of South Australians opt to invest in companies that reflect their ethical values, compared to just 9% of investors in WA.
• 23% of investors from SA invest purely for the thrill of it, while 29% are investing to make enough money to pass on to their children (compared to 13% of Victorians).
• 55% of South Australians are seeing opportunities in investing right now.
• 55% of investors from SA are also building a long-term portfolio, on par with Queenslanders.
• 21% of South Australians gather their stock market advice from investment newsletters and subscription services, while just 9% watch the news.
• Since COVID-19, 26% of investors in SA have become more conservative with their investment strategies to protect their money, while 21% of Victorians have become more active and even switched up their strategies.
• South Australians are independent when it comes to getting money advice, preferring to do their own research (34%), instead of speaking with a broker.

Investors in Western Australia:

• When it comes to getting their investment advice, 35% of investors from WA trust their friends, and 38% trust their families.
• 42% of West Australians prefer to invest in the stock market over living their property ownership dreams, compared to 12% of investors from NSW and VIC putting their money into real estate and investment properties.
• 33% of investors from WA only invest in companies that align with their ethical values.
• 24% of West Australians don’t have other employment and use the stock market to supplement their incomes.
• West Australians weren’t deterred by the volatility of the stock market during COVID-19, with 46% deciding to stick with their pre-COVID-19 strategies.

Related article: Best Return on Investments – Shares, Bonds, Cash or Property?

Investors in Queensland:

• 55% of Queenslanders are building a long term portfolio to steadily build their wealth.
• 46% of Queenslanders prefer to invest in shares, over leaving their money in the bank (compared with 29% of those from NSW).
• Queenslanders are independent when it comes to getting money advice, preferring to work it out themselves compared to getting advice from a traditional broker. 34% also undergo their own research and keep up to date with news and company announcements.
• 21% of Queenslanders invest in the stock market to save for a house (compared to only 6% of people living in SA and WA).
• 19% are investing to make enough money to pass on to their children (compared with only 13% of Victorians).
• Queenslanders weren’t phased by the global pandemic, with over 22% refusing to change their investment strategies during increased periods of market volatility.
• 37% of Queenslanders see opportunities in investing right now.
• They are keen beans, with 34% of Queenslanders wanting to invest more in the share market.

So, does that ring true for you? If you’re not sure how to getting started on your investment journey or want to learn more about the different investment assets, check out Canstar Investor Hub for more investing knowledge and insights.

Main image source: Ms. Li/Shutterstock.com

Follow Investor Hub on Facebook and X for regular investment updates.

→ Looking for more ways to create wealth? Learn more about Online Share Trading, Exchange Traded Funds and Cryptocurrency.

You can also compare health insurance, credit cards and life insurance, as well as home loans, with Canstar.