Frequently Asked Question - Should I Invest in Shares or Property - which is better?
One question we get asked a lot is whether property or shares is a better investment. The answer we always give is – it depends!
There are a number of factors to consider when deciding whether property or shares are the investment for you.
Timeframe
Goals
Risk tolerance
Ongoing costs
Cash flow position
Taxation
Future
Expected Yield
Purpose of investment
Amount to invest
Timing can also be a factor – although we can never perfectly time a market, you can keep an eye on the data for both markets to help you make a better-informed decision. Say for example if the property market has taken a hit, but the share market is on the up, it might be a better time to consider property, then look at shares later…but it still depends on all of the other factors.
At the current moment, according to CoreLogic, in the June quarter dwelling values declined 0.8% nationally. ‘As consumer sentiment recovered to pre-COVID levels in June, more people have become confident in purchasing property. This is reflected in a 29.5% increase in sales volumes nationally over the month.’
When looking at the property versus shares investment decision, it is important to remember that it may be one or both that would be suitable, and this all comes back to what your goals are, and how the investment fits into those goals. Fundamentally, it comes back to what your overall plan is, and how either or both of those investments would help in delivering what you are setting out to achieve.
Please note with any investment decision, it is important to seek financial advice first.