Australians under 35 are being encouraged to invest in the share market instead of buying a home.

Chris Brycki founded Stockspot, an investment firm that focuses on millennials who have chosen to skip home ownership in favour of shares, in 2013.

"Between 5 and 10 per cent I'd say of our clients are specifically investing to save up for a house deposit," he said.

"The rest either have decided they either don't need to save up for that or they've chosen that that's not what they're saving up for."

Mr Brycki said according to the firm's research renters who invest in shares are likely to be better off than property owners over the next seven years.

That matches up with the Reserve Bank's analysis that Australian property is 19 per cent overvalued.

"Now after two years our average client has around $60,000 invested with us, which is starting to get a lot closer to what you'd need for a house deposit," Mr Brycki said.

"But we're only seeing a very small number of clients actually withdraw funds to buy a house, which suggests to us that people do like the flexibility of investing in shares and they've decided that they don't actually need to buy a property."

Ben, like many younger Australians, said he no longer sees owning a home as a necessary step in life.

"The longer term leases in Europe and even in the UK now have been around for a very long time and it's not considered strange not to own the place you live in," he said.

"There is this notion that you have security or certainty by buying the property that you live in but if you can get a great return putting your money elsewhere then — unless it's better to put it into property — then there's no secret or trick or advantage to having it there instead."

Millennials encouraged to buy shares

Investment advisers say a record number of young people are entering the share market and evidence suggests there are plenty more to come.

And despite the volatility, Urbis chief economist Nicki Hutley thinks they should actually be investing more in the share market.

"I think it's fantastic, and I think every generation does this — they face a different type of challenge and they adapt to it," she said.

"So you don't necessarily have to own a home as a form of wealth creation.

"It obviously has security of tenure, much more so than renting, but financially if you buy into the market when it's at its peak, if you have a very very large mortgage and you're paying heaps of interest and you don't pay it off quickly enough, you can end up financially being worse off owning a home than you can if you're actually renting."

Ms Hutley explains that millennials have entered a world of extremely low interest rates, and with record low wages growth, have effectively had to make their own path to wealth.

But she warned younger Australians more than ever will need to do their investing homework.

"Obviously the rules are changing so quickly for this generation, with technology, with what's happened to the cost of housing in so many cities, with where jobs are and the longevity of jobs," she said.

"They've got a much more flexible lifestyle and they'll invest in the same way to suit that flexible lifestyle.

"It's very different to what we know but it's every bit just as valid."