Property v Shares – the facts

It’s the million dollar question – property or shares?

By Mark Millington

02-03-2018 |
It’s the million dollar question – property or shares? The answer - residential property!

If we look, statistically, at the Australian performance over the past 20 years an investment in residential property returned a 9.9% gain (including costs and taxes) compared with Australian shares 8.7% and global shares 8%.

Accordingly, if you’re thinking of capital investment, take into account that property in Australia (for 20 years) has followed a steady trend whereas shares have been erratic (remember the GFC?).

Further, should you become a home-owner or investor, you have the opportunity to accelerate the capital growth on your property by undertaking renovations. Remember, with regard to real estate, all decisions are in your hands; not so, with the sharemarket.

So, if you’re thinking of investing in real estate, the first step towards purchasing a property is to understand the marketplace. At First National Lakeshores, we prepare a outlining comprehensive market trends in the region. This report enables buyers to take advantage of the property market using expert, factual information.

It’s widely known that Australians love property and, in fact, 70% own their own home. Added to this, many homeowners are using the equity in their home to purchase an investment property.

In summary, it would not be sound advice to disregard the value of purchasing shares as they are a major contributor to the country’s economy as well as investors’ personal wealth. However, it’s widely acknowledged that Australia is firmly a ‘bricks and mortar’ society.

We like to own the roof over our head. Why? – It’s a solid investment, it’s tangible, secure and comforting.

DISCLAIMER - The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions.

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