Property Vs Shares

Dan Grantham • Aug 14, 2023

When it comes to investing, it’s a common debate as to whether buying property or

shares is the correct path. In reality, it comes down to each person’s individual

circumstances.

I have a number of clients that have bought investment properties for varying reasons: property for their kids, diversification, long-term development play and capital growth or yield. Shares however have their own benefits to them such as the liquid nature, lower overhead costs and the ability to spread your available funds across a number of options.


The pros of investing in property are:

  • Property is a tangible investment something you can see feel and touch.
  • You can increase the value yourself through renovations
  • It can yield strong rental returns buying well and in a popular area
  • It benefits from negative gearing
  •  lower your yearly taxable income
  • There is a limited supply of property – this helps to hold the value of the asset.


The pros of investing in shares are:

 

  • It’s more hands-off than property
  • It’s more liquid than property
  • It can yield strong dividends
  • It benefits from franking credits
  • Lower overhead costs

 

As an experienced local buyers agent, we have an in-depth understanding of market trends, as well as having access to both off-market and pre-market properties. The debate between property and shares can also vary based on market trends. For instance, in recent years, smaller property, such as one-bedroom apartments, haven’t gone up in value as much as 2-bedroom apartments for example.


Both property and shares are good investment options, so which one you choose should come down to your personal interests and tastes.

 

Having said that, the best strategy is to have a mix of both if possible.



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