Investing in property or shares are two of the most common ways to build wealth outside of superannuation and which is best is often subject to debate. But it’s not a debate that advocates of either investment will ever win because it really comes down to which is most suitable for your personal situation.
There are commonly held misconceptions that property is the safest type of investment and that it’s always going up in value. At the same time, many perceive investing into the stock market to be like playing at the casino or that it’s too complicated to understand. None of these assumptions are true. Investing into property or shares will both work as solid investments for anyone that does it properly. To help you decide which is best for you, here are benefits and risks of each.
Why you’d want to invest in shares
Why you’d want to invest in property
Why you wouldn’t want to invest in shares
Why you wouldn’t want to invest into property
While nothing is perfect, there should be a scenario that suits you better. Comparing one to the other without taking all the structural, borrowing, taxation and cash flow details into consideration will lead to inaccurate conclusions for you. Ignore the hype, media and other people’s opinions at barbeques and take the time to work out what is right for your unique situation. Keep in mind you may not want to put all your eggs in one basket and take a long term view.