Millennials In Australia Would Rather Save For Travel Than Own A House: CommSec Report Reveals

A recent report from CommSec has revealed an interesting fact about millennials in Australia. They prefer saving for various reasons such as travel. But, they are not much interested in saving money to buy a house of their own.

More millennials in Australia are depending on trading shares to take more control of their financial security. There is a rapid increase in the number of young people investing in share market. However, they are more likely to build wealth than to invest in real estate.

According to the new CommSec report, more than half of the people who invest in share market are under 35 years. There is sharp rise in the number of CommSec customers going for share market investments. The report also highlights what kind of stocks these young people prefer to invest in.

Since millennials are interested in technology, they tend to invest more on regional tech giants like Wisetech and Xero. Among international companies, they prefer the top names in the business, such as Amazon, Google and Apple.

CommSec Managing Director Paul Rayson believes the young Australians should get more knowledgeable about how to invest more effectively in growth stocks. They should learn to protect themselves from market events by diversifying their investments.

According to Rayson, a significant section among the millennials in Australia are not at all interested in home ownership. There are many reasons why they prefer to save money. But, owning a house is not among those reasons. They are more involved in saving money for their future, and that’s why they’re getting more engaged in online trading.

Rayson believes the Australian youth tends to take greater risks for higher returns. They have shown significant interest in growth stocks. Their interest in the new economy is one of the reasons why they do not shy away from investing in new companies.

News.com.au advises young Aussies to do their research before putting their money on anything. They should not invest everything in just one share. They should rather diversify their investments. Millennials in Australia are also advised to think of long-term success instead of falling for short-term gain.

The Australian Financial Review reports that CommSec is going to encourage young investors to diversify their holdings. On Monday, CommSec will announce a revised list of brokerage fees for trades under $1,000.

[Featured Image by Robin Marchant/Getty Images for Cantor Fitzgerald]