Columnist David Koch

If your great Australian dream is still a home on a quarter acre block but all you can afford is just the block, don't despair, it could actually work out in your favour!

Buying a home is more about security and lifestyle these days, rather than investing, as there are plenty of better ways to make returns than property.

Even though some property markets in Australia have gone through boom times over the past decade, experts agree it would have been a much smarter investment decision to rent rather than buy over that time period. That's as long as you invested the difference between your rental payment and what you would have paid on the mortgage into other areas, such as shares.

But, if you just sat back and watched your extra cash run through your fingers for all those years, then bricks and mortar may have been the better option for you. After all, one of the big benefits of owning a home is that it forces you to save – and quite often scrimp as well. In terms of investment, being able to pay more than the minimum repayment means huge savings.

But for many who can only afford the minimum mortgage repayments, there may be some better investment opportunities out there.

Believe it or not, a university study conducted a few years back found that given the high costs involved in buying residential property, it's only after 17 years of continuous ownership that a home buyer financially ends up in front of a person who rents!

So if you don't have the cash right now to have the choice, there's definitely a bright side. If you're renting and can get yourself into saving more on top of that and investing it, you'll come out ahead.

The first step in this process is to work out that difference, and then arrange for that amount to be automatically transferred from your bank account to a high-interest account.

When that money reaches a considerable value, you may think of transferring it to a growth-oriented investment, such as a managed fund.

If you're not sure, sit down with a reputable financial planner. They'll be able to set out the pros and cons of each scenario and help you develop some really great wealth accumulation strategies, so you can make a wise investment decision for you and your family going forward.