The Three Biggest Investment Myths Australians Still Believe
Written by Lance Swansbra
When it comes to building wealth, Australians love to chat about property prices, share tips from the latest hot stock, or compare super balances at the weekend BBQ. But underneath all that talk, there are a few stubborn myths that just won’t die.
The problem is these myths don’t just make for poor banter, they can hold you back from reaching financial freedom, and in some cases cost you hundreds of thousands of dollars over your lifetime.
At Braeside Wealth, we spend a lot of time helping clients cut through the noise and focus on what actually works. So, let’s bust three of the biggest investment myths Australians still believe.
Myth 1: “Property always goes up“
f you’ve lived in Australia for more than a minute, you’ve probably heard this one. Property is part of our national identity, the great Aussie dream of owning your own home, plus maybe an investment property or two. Dinner table conversations are full of stories about the mate who bought in Sydney 20 years ago and is now sitting on a gold mine.
But here’s the truth: property doesn’t always go up.
The Reality
Yes, in the long run, property values tend to increase, especially in major cities with limited land and growing populations. But in the short to medium term, property markets can and do go backwards.
Think about:
The early 1990s recession — Australia's two largest cities saw the biggest falls, with house prices falling 10 per cent in Melbourne, and roughly 9 per cent in Sydney between 1989 and 1991.
The Global Financial Crisis (2008) — property prices wobbled, with Australia’s median property price falling by around 8.5% over an 11 month period
Interest rate hikes in 2022–2023 — many Australian markets saw values fall as borrowing power was slashed. On average dwelling prices in Sydney dropped by 12%.
And even if prices don’t fall, they can stall. Between 2010 and 2019, much of Perth’s property market went sideways, leaving investors with stagnant growth for nearly a decade.
The Catch
The myth that “property always goes up” leads people to overstretch, borrowing to the hilt because they believe time will bail them out. That might work in a rising market, but when interest rates rise or values dip, that strategy can put families under real financial stress.
A Smarter Way to Think
Property can be a great wealth builder, but it’s not bulletproof. The key is to:
Buy the right property (quality, location, demand).
Don’t overextend yourself financially.
Remember property is just one asset class, diversify instead of betting everything on bricks and mortar.
Myth 2: “Investing is only for the wealthy“
Another stubborn belief is that you need to already be rich before you can invest. Plenty of Aussies think investing is for “other people”, the cashed-up, the finance nerds, or the folks who read the Financial Review for fun. So, they keep all their money in cash, in a savings account or offset account, waiting for the day they have “enough” to invest.
The Reality
Investing is not reserved for the wealthy. In fact, it’s the main way everyday Australians become wealthy.
You don’t need a fortune to start. With online platforms and superannuation, many Australians are already investors without even realising it. Some platforms let you start with as little as $500. Exchange-traded funds (ETFs), for example, give you exposure to hundreds of companies for the cost of a nice dinner out.
The idea that you need to wait until you’ve got $100k lying around is simply outdated.
Why This Myth Persists
A big reason is fear. People worry about “losing money,” so they stick to cash because it feels safe. They also hear jargon like “derivatives” or “hedge funds” and assume investing is too complex.
But investing doesn’t have to be complicated. In fact, the simplest strategies like buying and holding a diversified mix of assets often beat the complicated ones over time.
The Catch
By believing you need to be wealthy to invest, people miss out on the most powerful wealth-building tool available: compounding returns.
Let’s put numbers to it.
If you invest $500 per month from age 25 to 65, earning a modest 7% per year, you’ll end up with around $1.3 million.
If you wait until age 40 to start, you’d have less than half that amount — around $400,000.
It’s not about being rich first. It’s about starting early, staying consistent, and letting time do the heavy lifting.
A Smarter Way to Think
Investing isn’t just for the wealthy, it’s for anyone who wants choices in life. The earlier you start, the easier it gets. Begin with what you have, even if it feels small. The magic is in time and consistency.
Myth 3: “I can beat the market“
This myth is probably the most seductive of them all. Humans love to think they’re smarter than average. We love stories of people who picked the right stock at the right time and got rich overnight.
It’s why finance shows still exist, why trading apps are so addictive, and why so many Aussies can tell you about their one big win on Afterpay or Bitcoin.
But here’s the cold truth: consistently beating the market is near impossible.
The Reality
Over decades of research, the evidence is overwhelming. The vast majority of professional fund managers, people with armies of analysts, supercomputers, and access to inside data fail to consistently beat the market after fees.
If the pros struggle, what chance does the average investor, juggling work and family life, really have?
Sure, you might get lucky once or twice. But luck isn’t a strategy. And for every person who brags about their winning stock pick, there are countless others quietly nursing losses they don’t mention at the BBQ.
Why This Myth Persists
Survivorship bias — we only hear about the winners, not the losers.
The media machine — headlines are designed to grab attention: “Top 10 stocks to buy now!”
Ego — it feels good to think we’re smarter than the market.
The Catch
Chasing hot tips, day-trading, or jumping in and out of markets usually leads to one outcome: lower returns and higher stress. Investors who constantly try to outsmart the market often underperform the very market they’re trying to beat.
A Smarter Way to Think
Instead of trying to beat the market, focus on matching it with low-cost, diversified investments. Think index funds or ETFs that track the broader market. Combine that with a long-term mindset and you’ll likely do better than most stock pickers over the long run. Investing should feel boring. That’s the secret. If you’re looking for thrills, go skydiving, don’t gamble your retirement on stock tips.
Bringing It All Together
These myths are powerful because they contain a kernel of truth:
Property can be a great investment, but not always.
Wealthy people do invest, but they became wealthy by investing, not the other way around.
Some people do beat the market, but most don’t, and even fewer do it consistently.
The danger is when these myths become unquestioned beliefs. That’s when people make poor decisions, like taking on too much debt, leaving money idle in cash, or speculating instead of investing.
The good news? Once you see the myths for what they are, you can avoid the traps and start building wealth in a way that actually works.
What to Do Instead
Diversify — Don’t put all your eggs in one basket. Spread your investments across shares, property, and other assets.
Start early — Time in the market beats timing the market. Start with what you can and build momentum.
Keep it simple — Focus on strategies that work over decades, not days. Boring often beats exciting.
Get advice — The right financial advice can help you see through the myths, avoid costly mistakes, and stay on track when markets get bumpy.
Final Thought
Making work optional isn’t about chasing the next hot trend or believing old myths. It’s about smart, consistent, long-term investing. Australians deserve better than barbecue myths. By focusing on what actually works, instead of what your uncle swears by, you can put yourself in the best position to build real wealth and create the freedom to choose how you spend your time. And that’s what it’s all about.
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The information in this article is general information and does not take into account any person’s individual situation. You should always do your own research, or seek professional advice to assist you in making an informed decision about what suits your needs.