How Much $100K Made In Australia Since 2016

In 2016 three mates each had a hundred thousand dollars. Two of them bought an investment property in the same month for the same price with the same loan, one in Melbourne, one in Perth. The third bought shares and got laughed at. Ten years on, the gap between the two property buyers is bigger than the gap between shares and either of them. This isn't a forecast. It already happened, and the numbers are published. What This Video Covers What each of the three mates actually did with their hundred thousand in 2016, why Melbourne looked like the safe bet and Perth looked like a mistake, what happened over the first five years and why it reversed completely in the second, the real Cotality growth figures for both cities, what roughly twenty thousand dollars a year of holding costs does to the comparison, where the shares investor finished once he put in the same money, why property is a growth asset that pays you almost nothing along the way while the ASX is an income market built on dividends and franking, the negative gearing and capital gains changes now law and why they catch share investors too, and what all of it says about picking winners. Timestamps 0:00 Three mates, three choices, 2016 0:32 Why this is such a good test 1:18 The first five years 2:22 Everything turns inside out 3:16 Ten years later, the real numbers 4:12 Where the shares investor landed 4:55 What the real variable actually was 5:31 Growth assets versus income assets 6:27 The rules just changed again 6:48 The real takeaway 8:07 Thanks for watching Sources Cotality Home Value Index, results as at 30 June 2026: ten year and five year dwelling value growth by capital city (Perth +109.4% over ten years and +89.6% over five, Melbourne +32.2% over ten years and +1.2% over five), national gross rental yield 3.7%, investor loan rates averaging around 6.4% Market Index, June 2026: S&P/ASX 200 has returned 8.28% a year including dividends since inception Reserve Bank of Australia: Monetary Policy Decision, June 2026 (cash rate 4.35%) Australian Taxation Office: Tax reform: Boosting home ownership, reforming negative gearing and capital gains tax Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 Worked example assumptions: both properties purchased for $500,000 in 2016 with a $100,000 deposit and a $400,000 loan over 30 years, at a blended 5% investor rate across the decade. Holding costs of roughly $20,000 a year reflect loan repayments plus rates, insurance, management and maintenance, less rent at a 3.7% gross yield. Share returns applied at 8.28% a year. All figures rounded and shown before tax on all three sides. Illustration only. Past performance is not a reliable indicator of future performance. Legal Disclaimer This video is provided for general information only and should not be considered financial, investment, taxation or legal advice. It does not take into account your personal objectives, financial situation or needs. Before making financial decisions, consider seeking advice from a licensed Australian financial adviser, registered tax agent or other appropriately qualified professional. Investing involves risk, including the possible loss of capital. Past performance is not a reliable indicator of future performance. 💬 A Note From Bruce Thanks so much for watching. Coming from several years in the finance industry I started this YouTube channel because I believe personal finance should not be scary or confusing. Every video is designed to explain money in a simple, practical way that everyday Australians can understand and actually use. I clearly use AI tools to help create the illustrations and voiceovers, but every script is carefully researched and written with one goal in mind: empowering everyday Australians to make informed and better financial decisions with confidence. If you found this video helpful, consider subscribing so you don't miss the next one. Thanks for being here. 💚💛 Tags #australiafinance #australianfinance #aussiefinance #propertyvsshares #perthproperty #melbourneproperty #investmentproperty #asx200 #negativegearing #capitalgainstax #australianproperty #frankingcredits