Low return expectations may be impacting first home purchases among younger Aussies, with investors turning towards equities and bonds to reap stronger returns.

That's according to the latest analysis from Fidelity, which compared real (inflation-adjusted) residential property prices for Australia's first home buyers through the generations.

Fidelity International cross-asset specialist Anthony Doyle said Boomers (born 1950) have cause for celebration, with fantastic results from their first home property purchases.

"It shows that for someone born in 1950, who purchased a house at the age of 30 (in 1980), the value of the average Australian property has risen by 187%," he said.

"For those born in 1950, the greatest appreciation in house prices has occurred over the past 20 years, a period of time that has coincided with falling interest rates and low inflation."

Generation X, those born in 1970, also have made massive gains from their first property investment.

"Contrary to popular belief, those born in 1970 (Generation X) have experienced a similar return from housing as those born in 1960 (Baby Boomers) as they approach the age of 50," Doyle said.

Millennials on the other hand, have reason to sulk.

"For those born in 1980 that purchased their first home in 2010, the performance of their house has been relatively poor relative to other asset classes, rising by only 9% in real terms over the course of the decade," Doyle said.

"By way of comparison, over the same time period global equities delivered a real total return of 145% (in AUD terms), Australian equities generated a real total return of 97%, while Australian government bonds produced a real total return of 63%."

Medallion Financial managing director Michael Wayne told Financial Standard that low inflation had helped deliver these returns.

"Over the last decade the ASX generated a total return of approximately 8.0% a year," he said.

"Although this is below the market average of approximately 10% a year since 1920, the 2010s had lower inflation compared to most prior decades, as such, delivering superior real returns.

"To give it some perspective, the S&P 500 averaged 17.0%, while international property prices grew by 13.5% over the decade. Corporate bonds also delivered extremely good returns during the same period," Wayne said.

Doyle argued low interest rates are sabotaging any chance Millennials had of being able to reproduce the returns their parents gained from property.

"Given the current high level of Australian house prices relative to incomes, without higher wages growth it is difficult to see the recovery in house prices seen over the last six months of 2019 being sustained over the medium term," Doyle said.

"In the short term, any interest rate cuts or quantitative easing from the RBA would certainly provide a tailwind for house prices, but with the Cash Rate already at an all-time low of 0.75%, the potential for a sizeable amount of additional monetary policy stimulus appears limited.

"Given the low absolute level of interest rates, it is unlikely that those purchasing a house today will experience the high house price returns that older generations of Australian homeowners have experienced."

Despite a fat chance of strong returns, Wayne believes prospect Millennial home buyers shouldn't be disheartened.

"I don't think the chart suggests Millennials shouldn't invest in property at all," he said.

"It just highlights that, when it comes to investing, just because something happened in the past, doesn't necessarily mean the same performance will be replicated again in the future."

So what assets will perform better for Millennial investors over the coming decades?

"It's difficult to say with certainty," Wayne said.

"However, high household indebtedness, record low interest rates and low wage growth will make it difficult for the property market to deliver the returns achieved in previous decades."