Owning a home has long been considered a cornerstone of financial stability and prosperity in Australia

Owning a home has long been considered a cornerstone of financial stability and prosperity in Australia. With its tax-free status, exclusion from social security tests, and impressive price growth, home ownership has proven to be a wise investment for generations. Here’s why prioritising your home can offer unparalleled advantages over other investment avenues, like superannuation.


  1. Lifestyle, Security, and Self-Determination
    Owning a home is not just a financial decision; it’s about lifestyle, security, and self-determination. Most Australians are willing to borrow extensively to own their home, valuing the security and lifestyle benefits it offers.
  2. Stability Over Market Volatility
    Unlike shares, residential property doesn’t subject homeowners to daily market fluctuations. As Warren Buffett puts it, daily market volatility can be “erratic behaviour” that homeowners don’t have to worry about.
  3. Rental Stress and Insecurity
    Renting can be stressful due to short-term leases and uncertainty. As housing prices rise, the dream of home ownership becomes more elusive for many, making renting a less attractive long-term option.
  4. Generational Shift in Investment Priorities
    With the rise of compulsory superannuation, younger generations are finding it challenging to enter the property market, shifting their investment priorities away from homes.
  5. Housing Shortages and Increased Rental Competition
    Australia is facing a housing shortage exacerbated by high immigration and low housing approvals. This shortage is driving up rental prices and increasing competition among renters.
  6. Superior Tax Benefits for Home Owners
    The tax advantages of owning a home often surpass those of non-concessional super contributions. For instance, the Principal Place of Residence (PPR) is excluded from capital gains tax and asset eligibility tests for age pensions.
  7. Assumed Home Ownership in Retirement Standards
    Retirement lifestyle standards often assume home ownership, emphasising its importance in retirement planning.
  8. Social Security Incentives
    Owning a home can impact eligibility for social security benefits positively, making it a more appealing option than investing heavily in superannuation.
  9. Home Equity Access for Retirement Income
    Homeowners can leverage their property to generate retirement income through schemes like the Home Equity Access Scheme (HEAS), offering a flexible alternative to traditional retirement income sources.
  10. Psychic Income and Lifestyle Benefits
    The non-financial rewards of owning a home, such as pleasant surroundings, safety, and security, contribute significantly to overall well-being.

Unlock the potential of investment residential properties within your super! While appealing, remember the regulations: you can’t live in or rent to relatives. Buying investment property in a SMSF, may help support your retirement income needs and could be a suitable way to secure your financial independence later in life.

While the merits of investing in residential real estate are clear, this article focuses on the unique advantages of owning your home. As the ex Governor Philip Lowe noted, our societal choices have made land prices high, making home ownership an attractive and enduring option.

Yes, every individual’s situation is unique, and there are caveats to consider. However, the advantages of home ownership in Australia remain strong and enduring. With increasing housing shortages, tax benefits, and lifestyle advantages, owning a home continues to be a cornerstone of financial stability and well-being.

Considering investing in property through your SMSF for a stronger retirement fund? Look to SW Brokerage. Our trusted Brokers and financial planning partners will seamlessly guide you through the finance process. Let’s navigate this journey together towards optimal returns.

Call us on 1300 SWB Way or email info@swbrokerage.com.au