Knowledge Centre

Is property better than shares

Is property better than shares?

Is property better than shares?

Outside of superannuation, property and shares are the two most common ways of building wealth in Australia, but choosing between the two can be hard, shares and real estate have both generated reliable income and capital returns for Australians over the long-term.

The past two years has seen the share market climb to record highs, regaining all of the losses seen from the COVID-induced crash in mid-2020.

Not to be outdone, the property market had a scorching year in 2021, with values reaching record highs. Property investment is generally considered a safer and more traditional way of growing your wealth in Australia. When considering property investment compared to investing in shares, the leverage you can get from buying an investment property makes it the clear better option.

“If you have $100,000 of cash or equity in your home you can buy a $400,000 investment property.

“Assuming you buy a quality property and stay away from student accommodation and the like, what is going to deliver you a better return long term? A $400,000 property or $100,000 of shares?”

There are many factors to consider before making a decision on whether to invest in either shares or property or both. These include budget, lifestyle, income, tax implications and even personal values.

It’s important to determine the right class or level of diversification that suits you. Some of the best returns our clients have achieved have been when carefully planning a strategy that incorporates both property and shares, where both asset classes have actually supported one another in achieving the desired results.

Please contact us for clarification, or further advice, regarding any of the topics covered in this knowledge center.

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