ABC star Alan Kohler warns Aussie property is a ‘bad investment’ amid market shake-up
ABC finance presenter Alan Kohler has told Australians to stop viewing home ownership as a reliable way to build wealth, declaring that property has become a "bad investment" as the housing market undergoes significant change. His comments challenge a long-held cultural assumption in Australia, where property ownership has traditionally been seen as the primary route to financial security, and come at a time when housing affordability remains a major national concern.
The article's full detail is not available beyond the headline, but Kohler's remarks reflect growing debate over whether Australia's property market can continue to deliver the returns it has historically offered, given persistently high prices and affordability pressures affecting prospective buyers. His warning is likely to resonate given his prominent, trusted position as a financial commentator on Australian public broadcasting.
- Alan Kohler says Australian property is now a "bad investment"
- He urges Australians to rethink home ownership as a wealth strategy
- Comments come amid ongoing housing affordability concerns in Australia
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Australian home ownership has long been treated as a near-guaranteed way to build wealth, thanks to decades of rising property prices and government policies that favour buying over renting. This assumption shapes major life decisions for millions of Australians, from saving strategies to retirement planning, and underpins much of the national conversation about housing affordability.
Alan Kohler is a well-known finance journalist and broadcaster, best known for his long-running finance segments on ABC television, Australia's public broadcaster. His views carry weight because of his standing as a trusted, mainstream commentator on economic matters rather than a fringe or partisan voice.
The backdrop to his comments is an Australian housing market that has become increasingly expensive relative to incomes, making it harder for younger and lower-income buyers to enter, while raising questions about whether property can keep delivering the same returns it has historically. Any suggestion that property is no longer a sound investment matters because it touches on deeply held beliefs about financial security and could influence how people think about saving, investing and buying homes in future.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Those sympathetic to Kohler's warning argue that Australian property has become dangerously expensive relative to incomes, delivering thin rental yields that no longer compensate for the risk and illiquidity involved. They point out that decades of historically exceptional capital growth were driven by falling interest rates, generous tax concessions such as negative gearing and the capital gains discount, and chronic undersupply, none of which can be relied upon to repeat indefinitely, and note that heavily leveraged, undiversified bets on a single asset expose households to serious financial strain if conditions shift. On this view, treating a family home or investment property as an automatic wealth-generating machine ignores opportunity costs and encourages complacency about genuine investment diversification.
The case against
Those who continue to see property as a sound investment argue that it has an unmatched long-term track record in Australia, combining capital growth with the forced-savings discipline of mortgage repayments and access to leverage that ordinary investors rarely get for other asset classes. They note that favourable tax treatment, chronic housing undersupply amid strong population growth, and the psychological and practical security of homeownership continue to make property a rational cornerstone of household wealth-building. From this perspective, a single commentator's warning should be weighed against generations of steady returns, and switching wholesale to other assets carries its own risks and uncertainties that are easy to underestimate.