A house like this in Concord West certainly looks attractive, but the $400,000 you'd need to save for a 20 per cent deposit might be better spent elsewhere.

If you haven’t already got one, you’re likely madly saving to purchase your own “Australian Dream”.

But with housing having never been so unaffordable, many young people are finding themselves sitting on a house deposit for years as we contemplate outer suburbs and apartments just to get our foot in the door.

But is spending the $100,000 house deposit required for a median Sydney property really the best decision young Australians can make for future financial security and, perhaps more importantly, contentedness?

Could investing in a big idea, an adventure, some self-development or the stock market perhaps pay bigger dividends than auto-piloting into real estate and the financial pressure it often entails?

We put the question to happiness, economics and financial experts to find out how they reckon we ought to spend our hard-earned savings.

$100K will get you a 10 per cent deposit on this house in Cabramatta in Sydney’s west. Or ...Source:Supplied

PLAY THE SHARE MARKET

Sarah Riegelhuth, founder of Wealth Enhancers, says that once you’ve built your savings, shares should be your first investment choice.

“I often see people buy property as their first and only investment but it can mean you’re tied to your mortgage for years and under financial stress, without having access to cash for other investments or opportunities,” she told news.com.au.

“If building wealth is your goal, then I’d suggest starting with a healthy cash position, then start building your share portfolio. Once you’ve got a substantial amount saved and invested, then you can think about property.”

With shares, you also have more opportunity to diversify and invest in a broader array of investments, plus you can get paid dividends — but they can be a riskier investment.

“It’s about how much risk you can bare — if having as little risk as possible is important to you, you should have a house,” explains Dr Stefanie Schurer, senior lecturer at the University of Sydney’s School of Economics.

Shares are also easier to sell quickly if you need to access your money, although it’s worth noting that Bessie Hassan, finder.com.au money expert, says they ideally should be viewed as a long-term investment.

“You need to allow time for shares to grow,” she explains.

“If you invest in shares you can benefit from long-term financial benefits through compounding.”

BUY AN EDUCATION

$100,000 could go a long way towards a masters or a doctorate degree and if you think you could seriously increase your earnings with an extra qualification, then it might be a wise investment.

“If you trust your own ability more than the returns of a house or the financial market, then you could do that,” Dr Schurer says.

If personal development is your goal, you might not need to fork out thousands of dollars — Happiness expert Dr Tim Sharp says a few decent self-help books could get you on your way.

“If you bought one book a month, that’s a pretty cheap investment for a potentially great return,” he says.

“You could learn about yourself and learn how to be a bit happier or more productive.”

START A START-UP

If you’ve got a big business idea, this lump sum could go a long way — and if you pull it off, potentially make bigger returns than a house ever will.

“If you want to be an entrepreneur you may need some cash around,” Dr Schurer says.

“You need to be accepting that you may lose the money, but if you are risk-loving, go for it — but not everyone is like that.”

If the thought of losing all that savings is too great, social researcher Mark McCrindle says you might consider using a portion of it to invest in your idea.

“If you’ve got that sort of money saved, it may not be too much of a risk to put $15,000 into a business idea that you’re passionate about giving a red hot go,” Mr McCrindle says.

INVEST IN EXPERIENCES

From a purely happiness-driven perspective, research shows buying experiences, whether that’s travelling or special dinners with friends, will probably bring you more happiness than material possessions.

“If you really enjoy living like James Bond and want expensive watches and a nice car, then do it, but it means over your lifespan you may need to make more money,” Dr Schurer says.

“If you do this between the ages of 28 and 35 and have no savings, you will need to work really hard after that.”

If making the most of your youth is important, then you might consider buying a flat or a home in a less desirable suburb so that you have more disposable income.

“I would put a good whack into getting a foothold in property — maybe just a unit or something affordable — and I’d invest in experiences while you have the freedom and energy of youth,” Mr McCrindle says.

GIVE IT ALL AWAY

It might sound counterintuitive after all of the years you’ve been building your savings account, but happiness expert Dr Sharp says that while everybody’s situation is different, research shows that if you donate to a worthy cause or buy gifts for your loved ones, you’ll probably be happier.

“Research suggests that if we donate to a good cause, we actually experience joy and happiness and satisfaction as a result — particularly if you give to a cause that is meaningful for you,” he explains.

BUT HOUSES ARE PRETTY GOOD ...

As much as we might baulk at the cost of a house, Dr Schurer says that houses have proven to be sound investments.

“In Australia, buying a house is of such interest because the returns are so high at the moment — in Sydney in 2014/15, house prices increased by 14 per cent,” she says.

There’s no doubt housing is still a solid investment. This place in Blackburn, Victoria, recently sold for $100,000 above its reserve price for $1.16 million.Source:Supplied

“But theoretically the house market can crash and 30 years down the track, we don’t know what it will be like.”

Ms Hassan says the returns for shares and property are relatively on par, but having a mortgage does have the added benefit of providing peace of mind.

Plus she says 35 per cent of economists finder.com.au surveyed believe property prices will rise by 10 per cent by 2020.

“With a historically low cash rate of just 1.75 per cent, many people are looking to break into the property market and pay down their mortgages as much as they can now because rates have never been so low,” she says.

Ultimately, the consensus from the experts is that everybody is different and you need to study your goals and investment comfort closely to make a plan that’s right for you.

If in doubt, diversifying is probably a safe bet.

“Hedging is always a good idea — put your eggs in different baskets,” Dr Schurer says.

“A house is always a safe option because you do need somewhere to live, but maybe you could also invest in high-risk shares to diversify. It’s also wise to invest in health and education, and if you want to have fun for a few years, it’s good for the economy as well as for yourself!”