For many Australians, achieving 10%+ returns is more than just a number. It represents financial independence, early retirement, or simply knowing your money is working harder than you are. But in today’s unpredictable market, is that goal still within reach, or does it carry more risk than reward?
Whether you’re building wealth through property, shares, or alternative assets, Ausfirst Lending Group is here to help you understand what it truly takes to pursue double-digit returns. We’ll explore the opportunities, break down the risks, and share practical strategies to help you grow your wealth with confidence and clarity.
Why So Many Investors Are Targeting Double-Digit Returns
In an era where standard savings accounts offer barely 4% interest and long-term superannuation returns hover around 6–7%, the idea of making 10% or more sounds like a fast-track to wealth. Whether it’s to retire earlier, pay off the mortgage sooner, or create generational wealth, many Australians are setting bold return targets.
But ambition alone isn’t enough. The Australian Securities and Investments Commission (ASIC) often warns investors about schemes promising high returns with minimal risk. The reality is more complex, and that’s where smart strategy and informed decision-making come in.
When 10%+ Returns Are Realistic, Not Reckless
Returns above 10% are possible when the right mix of timing, strategy, and risk tolerance comes together. Strong market recoveries, such as the ASX 200’s 20% rise in 2009 after the global financial crisis, show how well-timed investments can deliver impressive results. Investors with specialist knowledge, particularly in sectors like tech or healthcare, may also identify high-growth opportunities before they become widely recognised.
Take George as an example, a 45-year-old business owner who invested $100,000 in a tech fund during a market dip. Over five years, he averaged 11.2% per year and improved his overall return by distributing income through his family trust.
While not everyone will see the same results, a well-planned approach can make 10%+ returns a realistic goal.
High-Return Asset Classes Australians Are Exploring
Chasing 10%+ returns starts with choosing the right asset. While no option is guaranteed, some have historically delivered stronger results with the right strategy and timing.
1. Australian and Global Shares
Growth stocks, particularly in tech, health, and clean energy, have outperformed broader markets during certain periods. Actively managed funds and ETFs focusing on small caps or emerging markets can also deliver strong results. However, these options tend to be more volatile and usually require a longer-term investment mindset.
2. Property Investment (Residential and Commercial)
Certain regional areas, like South-East Queensland and parts of regional Victoria, have seen annual gains above 10%, especially with value-add strategies such as renovations, subdivisions, or Airbnb conversions. Commercial property may also offer strong yields, though access and funding barriers are higher.
3. Private Equity and Venture Capital
Private investments can deliver returns of 15% or more per year, but they typically come with higher risk, longer lock-in periods, and significant upfront capital requirements. While access to these opportunities has become more available to individual investors in recent years, this space still suits those with experience and a high risk tolerance.
4. Cryptocurrency and Digital Assets
Some Australians have achieved large gains through assets like Bitcoin and Ethereum, especially in earlier years. Still, crypto remains highly volatile, lightly regulated, and better suited to investors comfortable with risk. For Australians using crypto in self-managed super funds, strict ATO rules apply, so compliance is essential.
5. Alternative Assets
Investing in wine, art, farmland, or infrastructure funds can offer long-term value and help diversify a portfolio. These assets often move differently from shares and property, making them useful in managing overall risk. While not common in most portfolios, they’re gaining interest among high-net-worth investors seeking uncorrelated returns.
Strategies That May Boost Your Portfolio Over the 10% Mark
Earning over 10% returns takes more than the right asset. It also requires smart strategies that balance growth and risk. Here are some of the most effective approaches:
1. Core-Satellite Investing
The core-satellite portfolio approach combines a stable core, typically made up of index funds or blue-chip shares, with a smaller allocation to high-growth “satellite” assets like tech stocks, small caps, or speculative investments. It offers a structured way to pursue higher returns without overexposing your entire portfolio to risk.
2. Leverage and Gearing
Borrowing to invest can magnify both gains and losses. Common in property and share investing, gearing allows you to grow your asset base faster. The key is making sure the loan is affordable, the interest is tax-effective, and the strategy fits your long-term goals. Used wisely, it can significantly boost returns over time.
3. Tactical Asset Allocation
Rather than sticking with a fixed asset mix, tactical allocation adjusts your portfolio based on current economic trends, sector performance, or interest rate movements. For example, increasing exposure to infrastructure during inflationary periods or rotating into tech during growth phases. This approach requires regular review and a clear set of rules to avoid emotional decision-making.
4. High-Conviction Investing
This strategy means putting more into a smaller number of well-researched investments rather than spreading your money thinly across many. It requires strong research, confidence, and patience. While it has the potential to boost returns, it also carries more risk if one of your key holdings underperforms.
5. Private Placements and Pre-IPOs
Investing in early-stage or unlisted companies before they go public can deliver outsized returns. These opportunities have become more accessible in recent years, but they still involve high risk, limited liquidity, and longer holding periods. They’re best suited to experienced investors willing to take a hands-on approach.
6. Dividend and Franking Credit Strategies
For those focused on income, fully franked dividends from ASX-listed companies can provide strong after-tax returns, especially for retirees or those on lower marginal tax rates. This approach blends steady income with tax efficiency and can help smooth out portfolio performance during periods of market volatility.
The Risks of Chasing Big Returns Without a Clear Strategy
Chasing 10 per cent returns can support long-term wealth, but without a clear plan and strong grasp of the risks, it often leads to setbacks, especially in unpredictable markets. Here are some common traps Australians fall into:
- Overconcentration – Investing too heavily in one sector increases risk.
- Illiquid Assets – Hard-to-sell investments can trap your money when you need flexibility.
- High Volatility – Big price swings often lead to rushed, poor decisions.
- Scams – Promises of “guaranteed” high returns usually point to risky or dodgy offers.
- Overleverage – Borrowing heavily can backfire if markets drop or rates rise.
- Emotional Investing – Fear and greed often lead to bad timing.
- No Diversification – Putting all your eggs in one basket increases the chance of losses.
How to Tell When You’re Taking on Too Much Risk
Risk often goes unnoticed until it leads to losses. If you’re aiming for returns above 10 per cent, be wary of investments that promise strong results without clearly explaining the risks. A lack of transparency, unclear business models, or complex financial structures can be early warning signs.
Too much debt, especially in a rising interest rate environment, can quickly magnify losses. Limited access to your funds adds another layer of risk, particularly if conditions change. And if you don’t fully understand how an investment works, it’s best to stay cautious.
Good judgment and careful research are essential when assessing risk, especially when aiming for higher returns.
How Experienced Investors Balance Growth and Safety
Chasing returns is one thing, but keeping them takes smart risk management. That’s how experienced investors build long-term growth with confidence.
1. Diversifying across sectors and regions
Experienced investors know not to put all their eggs in one basket. They spread their capital across Australian and international shares, residential and commercial property, fixed income, and sometimes alternatives like infrastructure or commodities. This helps cushion the impact if one market or sector underperforms, creating a more stable long-term portfolio.
2. Rebalancing regularly
Rather than letting winners run unchecked, they periodically review their portfolio to maintain their ideal asset mix. This often means taking profits from assets that have grown too large and reinvesting in areas that are underweight. It helps manage risk and ensures the portfolio stays aligned with their original strategy.
3. Aligning strategy with personal goals
Every part of the portfolio is tied to a purpose, whether it’s generating income in retirement, saving for a deposit, or funding a child’s education. When investment choices align with personal goals, it becomes easier to stay focused and avoid chasing short-term trends.
4. Using tax-effective structures
Structures like SMSFs, family trusts, and investment companies are used to manage income, capital gains, and franking credits more efficiently. When set up properly, they can significantly improve after-tax returns. Professional advice is essential to ensure these are compliant and fit for purpose.
For those exploring SMSFs as part of their strategy, understanding how SMSF loans compare to conventional home loans can help clarify the borrowing rules and risks unique to this structure.
5. Maintaining a strong cash buffer
Holding cash or highly liquid assets provides a safety net during downturns or unexpected expenses. It prevents the need to sell investments at a loss and gives investors the flexibility to act quickly when new opportunities arise.
6. Working with a qualified financial adviser
Seasoned investors typically work with a trusted adviser to customise their strategy, monitor performance, and make adjustments as their goals or market conditions evolve. This relationship brings expert insight and keeps emotions in check during turbulent periods.
7. Staying informed through ongoing education
They treat learning as an ongoing part of their investment journey, staying informed through reliable sources and staying updated with market trends. This commitment to education builds confidence, sharpens decision-making, and helps them avoid common pitfalls along the way.
While these habits don’t guarantee 10%+ returns, they help create a stable foundation for sustainable growth, reduce avoidable risks, and make the journey a whole lot smoother.
If you’re an educator and in the early stages of building your financial plan, looking into mortgage tips for new teachers may offer relevant guidance on how to approach home ownership as part of a broader strategy.
Why Behaviour and Time Matter More Than Targets
High returns can be tempting, but lasting success comes from patience and discipline. Timing the market rarely works, and those who chase trends or react emotionally during downturns often fall behind. Staying focused on your strategy and ignoring short-term noise is what truly drives long-term results.
Here are a few ways to stay grounded and keep your strategy on track:
- Think in decades, not weeks.
- Avoid emotional decisions based on news headlines.
- Set rules for buying and selling, and stick to them.
- Automate your strategy to reduce interference.
- Track your progress against goals, not just returns.
- Get expert support when needed.
Ready to invest smarter? Talk to a mortgage broker and get the guidance you need to grow your wealth with confidence. Contact us today.
So, Is the 10%+ Return Goal Worth Chasing in Today’s Market?
Returns above 10 per cent are achievable, but they involve greater risk and demand thoughtful planning. For some investors, they can support ambitious goals. For others, especially those seeking stability or nearing retirement, the trade-offs may not be worth it.
What truly matters is whether your investment approach fits your life stage, goals, and comfort with risk. Often, a consistent and manageable return delivers better long-term outcomes than constantly chasing bigger numbers.
Focus Less on Return Targets, and More on Strategy
Rather than focusing on a specific number, it is often more effective to build a strategy that is tailored to your situation. A well-planned approach that balances diversification, tax efficiency, and personal goals can give you greater control and confidence.
It is not just about how fast you grow your wealth. It is also about knowing when to take advantage of opportunities and when to protect what you have already built. A strong investment strategy offers peace of mind as well as performance.
Whether you’re growing your wealth, planning for retirement, or looking to strengthen your financial foundation, clarity is the first step.
Let your money work smarter, not harder. Speak with Q Financial today.
Frequently Asked Questions (FAQs)
It’s possible, but not typical. Most residential property investments in Australia deliver long-term returns closer to 6–8% per year when you factor in both capital growth and rental income. Reaching 10% or more often requires more active strategies, such as renovations, subdivisions, or development projects. These come with higher costs, more risk, and greater effort, so they aren’t suitable for everyone.
Begin by confirming that the provider is licensed through ASIC and that a Product Disclosure Statement (PDS) is available for review. Be cautious of promised returns that seem too good to be true, especially if the risks aren’t clearly explained. Watch out for pressure to invest quickly, unclear business models, or a lack of transparency about how returns are generated. A legitimate opportunity should be easy to understand and backed by verifiable information.
Earning higher returns can lead to higher tax obligations. Capital gains from selling assets are taxable, although a 50% discount may apply if you hold them for more than 12 months. Interest, dividends, and rental income are also taxed at your marginal rate. Using tax-effective structures like trusts or SMSFs can help reduce the tax impact, but it’s important to understand the rules and stay compliant with ATO guidelines.
A return of around 6–8% per year is considered solid for a well-diversified portfolio with moderate risk. This can often be achieved through a mix of Australian and international shares, property, and income-generating assets. The key is consistency, not chasing the highest number. A slightly lower return with lower volatility can lead to better long-term outcomes and less stress along the way.
Yes, it can be. Dollar-cost averaging lowers the risk of investing a lump sum at an unfavourable time by spreading your contributions across consistent intervals. This strategy encourages discipline and helps smooth out market ups and downs. While it won’t guarantee higher returns, combining it with growth-focused investments can support your long-term goals in a steady, manageable way.
