Do you feel like you're sitting on the sidelines while everyone else is kicking life goals? Has your dream of home ownership shifted from 'when' to 'if'? It's no secret that those with a foot on the property ladder can have a wealth-building advantage, with each mortgage repayment building equity over time.
But renters of Australia, don't despair. It can be tough, but there are still ways to build wealth outside of homeownership. The biggest question may be how you choose to do it.
"Renters are in a pressure cooker right now,” says Sally Tindall, Canstar Data Insights Director. “Close to rock-bottom vacancy rates and rising interest rates have sent rents through the roof. Take Brisbane for example, where the rent for a median-priced unit has gone up 52% in the last five years according to Cotality data.
“Finding spare cash as a renter is not easy, but that doesn’t mean you should just throw your hands up in the air. Even small amounts, invested consistently, will pack a punch over the long term.”
Putting your hard-earned money to work over time, whether in property, super, shares, or ETFs, can help build wealth, even outside of the property market. Not sure where to start? Here are four investment strategies that could help boost your long-term financial security without owning the home you live in.
1. Invest in property, just not one you live in
Can't afford to buy in your city? That doesn't mean property is off the table. ‘Rentvesting’ (renting the home you live in while you own an investment property) has become a popular strategy among younger Australians.
As an investor, you can focus purely on the numbers when buying a property: rental yield, capital growth potential, proximity to infrastructure and employment. Meanwhile, you can rent a home in your ideal neighborhood or school catchment, or in an area that supports your regular commute.
However, some of the rules on investment property tax are changing. And you need to know what's coming.
Significant reforms to both negative gearing and capital gains tax (CGT) for residential property investors are expected to take effect in July 2027. These changes are aimed at improving housing affordability, and could have consequences for certain investors. If you’re unsure, consider reaching out for independent professional advice.
2. Build a share portfolio
If you’re new to investing, the stock market can seem daunting, but you don't need a lot of money to get started. Some micro-investing platforms now let Aussies invest their spare change (literally), while lower-cost brokers often charge as little as a few dollars per trade.
There are two broad appeals of share trading: price growth and dividends.
Shares are essentially little pieces of a company, and they tend to grow in value over time (but not always). So, someone investing money today might be hoping to realise capital gains in the years to come.
Some shares also pay out dividends. These are generally a portion of a company’s profits and can provide cash flow to investors.
Beyond cash flow, dividends can offer some tax benefits. Dividends from companies that pay tax in Australia often come with ‘franking credits’, which may help reduce the amount of tax an investor needs to pay. If you’re investing with the aim to receive franking credits, it could pay to get professional tax advice first.
Speaking of tax, as they stand, the proposed changes to CGT will also affect shares and other investment vehicles. As always, if you’re worried, reach out for expert advice.
A key to sharemarket investing is generally to build a diversified portfolio. Diversification means to spread your money across different assets, companies, and industries. The catch? It’s tricky to build a diverse portfolio spanning multiple shareholdings and can require significant investment. That’s one reason why many Aussie investors turn to ETFs.
3. Consider ETFs as a long-term investment
If you like the idea of building a share portfolio but don’t want to invest the time and money required to pick a diverse selection of individual stocks, exchange-traded funds (ETFs) may be worth a look. An ETF is essentially a curated fund that houses a selection of shares, and as investors can buy a portion of the fund, they can get exposure to all shares within it. An ETF might be focused on Australian shares, global shares, property, bonds, commodities, or a mix of them all.
Spreading your money across a variety of companies, rather than just one or two, can make market swings feel less intimidating.
"ETFs are a practical tool for investors seeking to remain invested through periods of volatility," Andrew Rogers, Managing Director and Head of Stockbroking at CMC Invest Australia, told Canstar. "Their diversification, transparency, and low-cost structure make them well-suited to investors who want to stay the course rather than try to time the market."
4. Get proactive with your super
"Super remains one of the most powerful wealth-building tools available because it can combine concessional tax treatment with the benefits of compounding over decades," says Ms Tindall. "Even relatively small additional contributions can add up to a substantial difference over time."
Concessional (before tax) super contributions are taxed at a rate of 15%, which is lower than most working Aussies’ marginal income tax rate. But there’s a catch. As of July 2026, only $32,500 of concessional contributions are taxed at the lower rate, and that sum includes your employer’s super guarantee (SG) contributions too.
If you haven't been maxing out your cap in recent years, you may be able to carry forward any unused amounts. This carry-forward rule lets you use unused concessional cap space from up to five previous financial years, provided your total super balance is below $500,000.
Compare your superannuationThe real secret: consistency is key
There’s an uncomfortable truth about building wealth: it isn’t always smooth sailing. But that's not necessarily a reason to panic.
"Reacting too quickly to market swings (in any industry) can lead to poorer long-term decisions," says Mr Rogers. "A clear investment plan, discipline, and a long-term focus can help investors stay invested through uncertainty and remain positioned for when markets recover."
It’s no secret the cost of living has created a significant barrier for many, but even minor moves today can lead to big financial wins in the future. Over the decades to come, a small, weekly ETF purchase could help build a diversified portfolio, while automated pre-tax super contributions could lead to a robust retirement fund. Even small, daily savings habits can slowly but surely stack up to a future deposit on an investment property.
The key element worth keeping in mind: start with a plan, and stick with it.
