Owning a home is still the great Australian dream, but for many mortgage holders there’s a question lingering in the back of their minds – could they be earning more money if they invest in shares?

The answer isn’t exactly a science, but there are some principles savvy investors can follow.

The goal of any investor weighing up buying shares rather than paying down a mortgage is to earn a return at least as good as the interest rate on the home’s debt. With interest rates at historical lows, that goal is potentially more realistic.

However, the sharemarket can be volatile, and it may also not be the most tax-effective method of investing. Homeowners should consider whether they ought to invest in superannuation, (the average superannuation balance at retirement is only just under $200,000 for men and $100,000 for women, according to Australian Super – the recommended amount is $1 million).

The real answer can only be provided once you have a handle on your financial position and understand your options. At Maddern Financial, we can help provide a solid view of your finances to take the next step. Why not start that journey today?

Disclaimer: The information on this site is of a general nature only. This is not a recommendation or endorsement of any product or investment. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions or consult the advice of an accountant or financial adviser.