Shares vs. Property - Aussie Stock Forums

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  1. #1
    still_in_school's Avatar
    Join Date
    Jun 2004

    Default Shares vs. Property

    Hi Guys,

    personally my vote is for shares & equities, and for the long term... property...


  2. #2
    Administrator Joe Blow's Avatar
    Join Date
    May 2004
    Blog Entries

    Default Re: Shares vs Property

    I think property is a more secure investment, however entry and exit costs are high.

    That said, I find the stock market more exciting and I enjoy learning about the way world financial markets work.

  3. #3

    Default Re: Shares vs Property

    Hi Sis,

    There is a place for both asset classes in an investors portfolio... You should have a "Both" option. Depending on the current market circumstances will determine which asset class is returning better for the time period specified.



  4. #4

    Default Re: Shares vs Property

    I think property is a more secure investment
    You also have to weigh up the risk/return factor.. the experienced traders would also say that their trading strategy is set up to minimise the risks and therefore be as secure if not more secure than property investment.



  5. #5

    Default Re: Shares vs Property

    Shares or Property that is the question eh?

    I like property for its seeming security and high returns of last few years. However this may not always be the case + the cost is horrendous.

    Shares provide me with nice smooth in/out transactions and flexibility which I love about it. But on the other hand its "nonexistence" (as in you cant really touch it even though I know there is a real company behind it) and risk (where the value may diminish overnight) makes me sometimes really anxious.

    So basically I am trying to find balance between those two investing vehicles. For myself I thought that listed property trusts may be the way to go....

  6. #6

    Default Re: Shares vs Property

    Property for me. But as i believe property will slow over the next 3-5 yrs. Now is the time to learn a bit about share trading.

  7. #7
    JetDollars's Avatar
    Join Date
    Jul 2004
    Sunset Beach, Sydney, Australia

    Default Re: Shares vs Property

    My vote is for property because at this stage I made most of my money through property, but I believe shares will also the other way of making money.

    Therefore the overall is property and shares for me.
    Warm Regards

    [If you think my post is for recommendations then you are kidding yourself]

  8. #8

    Default Re: Shares vs Property

    Unfortunately the cost of buying and selling property, as far as I am concerned is horrendous .With governments, banks solicitors real estate agents all with a finger in the pie . Shares can be bought and sold mostly at an instant at minimal cost . I far prefer shares because of this . I am also impatient ,and I prefer to make my money a little quicker than several years for the one transaction .

  9. #9

    Default Re: Shares vs Property

    I vote for both. But as that's not an option I don't vote at all.

    Out of curiosity Sis, why didn't you include a both and a neither option? Specially both, seeing as that's your own choice.

    Have a wealthy weekend,

    Without music, life would be a mistake

  10. #10

    Default Re: Shares vs Property

    The wisest investors diversify.

    Would you only trade one share?

    Money can be made in any investment field if you know what you are doing so it is best to stick to what you are good at, however in my opinion it seems silly to play with large amounts of money in the stockmarket if you still rent (everyone has there own preferences).

    Property returns are far less than that of shares but at the same time are far more stable, over the longer term you make money. (not that you dont with shares).

    Property is also a much greater exposure. where I live the median house price is a mere $240,000 but I dont know many ppl with a $200,000+ share portfolio.
    10% of $240,000 is $24k a year, a $50k share portfolio would have to return 50% to achieve the same level of profit.

    IMHO the greatest investment you can make for yours and your childrens future is to own your own house.
    Just think we are slowly becoming like Japan where they take out mortages for 100 years and there kids and grandkids are signed into the mortage.

    Besides equity makes for a great first share portfolio

    Anyway each to there own and if you are making money then keep it up

    The greatest trick the devil ever played was convincing mankind he does not exist.

  11. #11

    Default Re: Shares vs Property

    I was under the impression that it was best to invest in both , since property usally moves up in surges then levels out for a while, you should work the system, invest in shares once property has surged etc

  12. #12

    Default Re: Shares vs Property

    Perhaps to get the best from both worlds there are also the LPTs.

    I personally like them because they offer "safety" of property investing and flexibility of shares. They can provide the benefits of investing in multiple properties without the need of having houndreds of thousands to do so.

  13. #13

    Default Re: Shares vs Property

    Quote Originally Posted by Yack View Post
    Property for me. But as i believe property will slow over the next 3-5 yrs. *Now is the time to learn a bit about share trading.
    Wonder if Yack made any money out of property during the boom we've been having both in property and shares.


  14. #14

    Default Re: Shares vs Property

    Here we go again another property v shares thread!
    This is my first and last post in this thread... not getting involved. I will just sit back and watch Popcorn anyone?

    IMO a good mix of property and shares is always good... but property is so, so much better

  15. #15

    Default Re: Shares vs Property

    Shares for me.. I posted this earlier in another thread, but I beleive it's pertinent here also..

    Property just gives me the sheites with the nickle and diming.. It seems that everyone has thier hand in your pockets.. The property managers, the state government the local government, the water board the property managers brother in law (the maintenance man) the property managers sister in law (the gardner) and on and on it goes, then you pay your marginal rate of tax on any/the profit

    As an example a 400k property (owned outright) pulling in $400 a week will earn you approx 21k. Subtract management fee's (typically 10% but vary from state to state and negotiable if a number of properties managed), general maintenance, land tax, rates, insurance etc etc and you're looking around the 15k mark.. subtract the marginal rate of tax and you are probably looking at about 8k. Remember, That's not even considering the time frame to enter/exit, interest payments if you can't/don't own it outright, or the huge entry/exit costs!!

    The property may or may not appreciate/burn down/flood/be reduced to dust by termites or be destroyed by loser tennants..

    On the other hand you have 400k invested in quality Blue chip shares returning a dividend of somewhere in the order of a 4 - 6% fully franked dividend. Thats 16k - 24k that has the majority of the tax already paid, and nobody else dipping into your return or capital!!

    The Company/Shares may or may not appreciate/delist/be bought by private equity etc etc etc

    I've owned a reasonable investment property portfolio previously, now I simply own my own home and a small property investment, and yes I've made some good money from property over the years but theres no more property on the horizon for me, I'm picking up shares and squirreling cash away (for the correction..). If it's ROI you're after the share market wins hands down as far as I'm concerned.. If you want exposure to property, buy Bunnings/Westfield/Stocklands etc..



  16. #16

    Join Date
    May 2007

    Default Re: Shares vs Property

    I would invest in both, but I would do market timing and trend-following to maximise my profit.

    If a nice trend is forming in the equities market I would park my money there and get the money out when the trend is reversing.

    The same with the property market: trend goes up, I`ll be in.

    No use to stay in either market and your investment is under water for years............

  17. #17

    Default Re: Shares vs Property

    But then you could also have,

    A flock of low $100k buy's now val'ed at $300k+.

    $280 to $290/week rent's with 1 week vacancy max.

    No land tax, tenant pay's water, low maintanence, yes to rates insurance etc but all tax deductable.

    Flat 5% agency fee's

    Landlord's insurance to cover everything also tax deductable.

    Picked up over $1mil in equity, in 2 year's which can be leveraged into shares, to keep thing's ticking over during the quieter property cycle........................instead of selling, paying CGT and stamp duty out and back in when getting into the next property phase.

    I like it both way's.


  18. #18

    Default Re: Shares vs Property


    Shares/Futures (paper assets) at all times.

    Properties when the time is right, and the time is definitely not right at the moment.

  19. #19

    Default Re: Shares vs Property

    Quote Originally Posted by Temjin View Post

    Shares/Futures (paper assets) at all times.

    Properties when the time is right, and the time is definitely not right at the moment.
    That's what Yack said in 2004 and Krisbarry on another thread around the same time.


  20. #20

    Join Date
    Aug 2005
    Blog Entries

    Default Re: Shares vs Property

    I am trying to get into property. Reality is that if you have 1 million worth of property that is renting at 4% a year, your looking at $40,000 a year, which is much as I earn now from my job.

    I see myself making good dollars in the stock market eventually to fund my property aspirations.

    I will always be in shares however.

    I am trying to start with a $250,000 place around Frankston area in Melbourne.

    Something on a decent bloke of land that has sub-division potential later on.... thus thinking of the tax man later on.

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