For what it's worth, I think both ways can work, it all depends on the individual.
Pros for home ownership in OZ; * CGT free - not taken into account in the study. * High leverage available * Locks in your retirement "accomodation cost" at today's dollars. i.e. your rent will never increase once you've paid off your home. This is the biggest attraction to owning my own home. No matter what happens, I have somewhere to live for the cost of council rates and maintenance which can be very low if needed. I don't even want to think how much rent will be per year by the time I retire...
Pros for Stocks; * if you use index funds they are very low cost * can sell any size portion * freedom to move home location easily and cheaply * can play the market a bit with timing entry and/or exits much easier than property (this can be pro and a con - if done badly)
The ideal mix is obviously a combination of both, the study shows renters win 62% of the time. For those odds, I'll be a home owner every time and build up share holdings with excess funds.
