The traditional Australian dream of homeownership appears to be waning among younger generations, with many opting to invest in cryptocurrency over real estate. A recent survey by comparison platform Finder revealed that one in 14 Australians plans to buy cryptocurrency in the next 12 months, compared to just one in 20 intending to purchase property.
Millennials are at the forefront of this shift, with one in eight choosing to allocate their finances to digital currencies. In contrast, only one in 12 Gen Y participants reported a preference for investing in bricks and mortar.
David Haslop, founder of the Australian Crypto Convention, attributes this trend to the growing unaffordability of homeownership. “People are looking at Bitcoin and crypto as a way to grow wealth in order to get into the housing market because working your 9-to-5 job these days just isn’t making enough money to even get a deposit,” Haslop explained.
Graham Cooke, head of consumer research at Finder, echoed this sentiment. “Unless you have help from the bank of mum and dad, it’s more difficult than ever to buy a home,” Cooke said. “This is why many are looking at high-risk, high-reward assets like crypto as a shortcut to saving a deposit.”
Returns on investment are a significant factor driving the appeal of cryptocurrency. While the average home value increases by about 6% annually, Bitcoin has surged approximately 125% over the past year. “If you look at Bitcoin as property rather than currency, then Bitcoin’s a better property to invest in because it’s providing a higher return on investment in a much shorter time,” Haslop said.
Gold Coast crypto entrepreneur Sydel Sierra, co-founder of Digital Wealth Group and retired at 30, highlighted the allure of quick, substantial returns. “They’re looking at an average house that might cost $800,000 or even $1m, so it’s a lot more debt that they’re looking to take on as opposed to getting into crypto, especially in what we call the bull market, in which the prices are really going up,” Sierra noted. “People can be making 100, 250, even 1000 per cent in a matter of a few weeks, even days, and that’s just incomparable to any other investable asset at the moment.”
However, experts warn of the high risk associated with cryptocurrency. “The best general advice would be to have a diverse portfolio of low, medium and higher risk assets, so having far more money in your savings account than your crypto account would be wise,” Cooke advised.
As young Australians increasingly turn to cryptocurrency for financial growth, the debate between investing in digital assets versus real estate continues to reshape the country’s economic landscape.
